Key points:
- Japanese investment firm Metaplanet has increased its Bitcoin holdings to 245.99 BTC, worth approximately $16.7 million.
- The company’s latest purchase of 20.38 BTC valued at $1.2 million completes its goal of acquiring 1 billion yen worth of Bitcoin.
- Metaplanet’s stock price has surged, rising 25% on Monday and over 800% year-to-date.
- The firm is using Bitcoin as a hedge against inflation and economic instability in Japan, earning it the nickname “Asia’s MicroStrategy.”
- Metaplanet plans to continue accumulating Bitcoin using long-term yen debt and occasional new share issuances.
Japanese investment firm Metaplanet has seen its bold Bitcoin strategy pay significant dividends, with its stock price skyrocketing as it continues to accumulate the cryptocurrency.
The Tokyo-listed company announced on Monday that it had purchased an additional 20.38 Bitcoin valued at $1.2 million, bringing its total holdings to 245.99 BTC, worth approximately $16.7 million.
This latest acquisition marks the completion of Metaplanet’s previously announced goal to acquire 1 billion yen (about $6 million) worth of Bitcoin. The company has been on an aggressive buying spree since April, making four separate Bitcoin purchases in July alone.
The market has responded enthusiastically to Metaplanet’s crypto-focused strategy. The company’s stock price surged 25% on Monday, contributing to an impressive 104% gain over the past month. Even more remarkably, Metaplanet’s shares have soared over 800% year-to-date, making it one of the best-performing Japan-listed companies in 2024.
Metaplanet’s approach to Bitcoin investment has drawn comparisons to U.S.-based MicroStrategy, earning it the moniker “Asia’s MicroStrategy.” The Japanese firm is employing Bitcoin as a hedge against inflation and economic instability, citing concerns over Japan’s weak yen, low-interest rates, and substantial government debt.
“Bitcoin is an absolutely scarce digital synthetic monetary commodity, with no central issuer,”
Metaplanet stated, explaining its bullish stance on the cryptocurrency.
“Bitcoin’s monetary policy is rigidly set in stone through 2140, setting it apart from both monetary metals and competing crypto projects operated at the whims of centralized developer teams.”
To finance its continued Bitcoin acquisitions, Metaplanet plans to leverage long-term yen debt and occasionally issue new shares. This strategy allows the company to divest from the increasingly weak Japanese currency while building a substantial cryptocurrency reserve.
The firm has also adopted a nuanced approach to accounting for its Bitcoin holdings. Long-term Bitcoin investments will be documented at their purchase cost and will not be subject to taxation based on end-of-period market value assessments. Other Bitcoin holdings will be appraised at market values quarterly, with resulting gains or losses recognized as non-operating income or expenses.
As Metaplanet continues its Bitcoin accumulation strategy, it has positioned itself as the 21st largest corporate BTC holder globally, according to CoinGecko.
The company’s success story is being closely watched by investors and corporations alike, potentially setting a precedent for other Asian firms looking to diversify their treasury reserves in the face of economic uncertainty.
