Metaplanet, a publicly-listed investment and consulting firm in Japan, has significantly increased its Bitcoin holdings by purchasing an additional $2.5 million worth of the cryptocurrency. This move comes despite the recent drop in Bitcoin prices.
Metaplanet’s Growing Bitcoin Investment
On July 7, Metaplanet announced via X that it had purchased 42,466 bitcoins for 400 million Japanese yen ($2.5 million). This acquisition brings Metaplanet’s total Bitcoin holdings to 203,734 BTC, acquired at an average price of around 10 million yen ($62,000) per coin. Notably, this average purchase price is about 7% higher than the current Bitcoin price.
Adoption of Bitcoin as a Treasury Asset
Metaplanet made a historic move in April 2024 by adopting Bitcoin as a treasury asset. The company initially invested $6.5 million in Bitcoin, a decision supported by prominent industry figures such as Mark Yusko of Morgan Creek Capital, Jack Liu from Ordiswap, and firms like Sora Ventures and UTXO Management. This aggressive strategy has led to Metaplanet being dubbed “Asia’s MicroStrategy,” drawing parallels to MicroStrategy’s substantial Bitcoin investments starting in 2020.
Also Read: Metaplanet Drives Bitcoin Adoption in Asia through Treasury Shift
Market Impact and Stock Performance
The announcement of Metaplanet’s Bitcoin investments had a profound impact on its stock price. The company’s shares surged by about 90% following the initial announcement. However, the subsequent decline in Bitcoin prices caused Metaplanet’s stock to drop. After peaking at 107 yen ($0.66) on June 11, the stock fell by 25% as Bitcoin’s price dropped from around $70,000 to below $60,000. Despite this, Metaplanet’s stock remains significantly higher than at the beginning of 2024, trading at 80 yen ($0.5), a 344% increase.
In late June, Metaplanet revealed plans to issue 1 billion yen ($6.26 million) worth of bonds to raise funds for further Bitcoin purchases. This strategy mirrors that of MicroStrategy, which has also raised capital through convertible notes in 2024 to expand its Bitcoin holdings.
