Metaplanet, often called ‘Asia’s MicroStrategy,’ saw its stock price soar by 10% on Tuesday after announcing another big Bitcoin purchase. This is the company’s third Bitcoin buy in just seven weeks.
Key Points
New Bitcoin Purchase: Metaplanet bought 23.25 Bitcoin for almost $1.59 million. This brings their total Bitcoin holdings to 141.07 Bitcoin, worth over $9.6 million.
Stock Price Increase: The stock price jumped 10.8% to $0.59 (92 Japanese yen) and then settled at $0.57 (89 Japanese yen) on the Tokyo Stock Exchange.
Investment Details: Metaplanet’s average purchase price for Bitcoin is $65,365 (10,278,391 Japanese yen) per Bitcoin.
Profit on Investment: With Bitcoin currently priced at $68,313, Metaplanet has made a 4.5% profit on their investment.
Bitcoin Holdings
Since April 23, 2024, Metaplanet has been buying Bitcoin. Their first purchase was 97.85 Bitcoin, followed by 19.87 Bitcoin on May 10. This makes them the 30th largest corporate holder of Bitcoin in the world.
Metaplanet’s Bitcoin holdings are growing fast. Source: Metaplanet
Why They Are Buying Bitcoin
Metaplanet is following a strategy similar to MicroStrategy, the biggest corporate Bitcoin holder. They plan to use different financial tools to increase their Bitcoin holdings. This move is to protect against Japan’s high debt and the falling value of the Japanese yen.
Japan’s Debt: Japan’s debt-to-GDP ratio is 261%, the highest among developed countries.
Yen Devaluation: The Japanese yen has dropped nearly 35% against the US dollar since January 2021.
Bitcoin’s Rise: Bitcoin has increased nearly 200% against the Japanese yen in the last year.
Market Reaction
Investors like Metaplanet’s Bitcoin strategy, leading to a nearly fivefold increase in its stock price since they announced the strategy on April 9, 2024.
Metaplanet stock performance after Bitcoin purchases. Source: Google Finance
Although Metaplanet’s Bitcoin holdings are impressive, they are still below MicroStrategy’s, which holds 214,400 Bitcoin, making up 1.02% of all Bitcoin that will ever exist.
Future Plans
Meta planet continued investment in Bitcoin shows their belief in the cryptocurrency as a hedge against economic issues and currency devaluation. By growing their Bitcoin reserves, they are positioning themselves as a major player in corporate Bitcoin investments.
For more updates, follow us on our social networks and stay informed about the latest in the crypto world.
