Metaplanet Acquires $1.2M Worth of Bitcoin, Shares Jump 20%

Highlights:

• Metaplanet acquired 20.381 BTC, totaling nearly 246 BTC.
• The company fulfills its plan to purchase 1 billion yen worth of BTC.
• Metaplanet’s stock price soared 20% following the news.

On July 22, Japanese investment and consulting firm Metaplanet announced that it bought an additional 20.381 in Bitcoin (BTC), valued at 200 million yen (approximately $1.4 million). This is the company’s fourth Bitcoin purchase in July, raising its total holdings to nearly 246 BTC, worth about $16.7 million. 

With this latest acquisition, Metaplanet said it had fulfilled its initial plan, which was announced on June 24, to acquire 1 billion yen worth of BTC. The company said its basic policy is to “hold Bitcoin for the long term.”

*Metaplanet purchases additional 20.38 $BTC* pic.twitter.com/xt1AjSWPNL

— Metaplanet Inc. (@Metaplanet_JP) July 22, 2024

Metaplanet Adopts Bitcoin as Reserve Asset

In May, the Tokyo-listed crypto investment firm said it adopted BTC as a strategic treasury reserve asset. The company cited Japan’s prolonged economic pressure, high government debt, and extended negative interest rates as reasons for this move. The firm also noted that BTC offers a “non-sovereign store of value” that is appreciated against fiat currencies.

Metaplanet previously stated:

“The move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen.”

Metaplanet has been actively acquiring Bitcoin over the past few months. According to data from Bitcointreasuries.net, the company’s initial Bitcoin acquisition occurred on April 23, when it purchased 97.85 BTC. Subsequent purchases included 19.87 BTC on May 10, 23.351 BTC on June 11, and 20.195 BTC on July 1. Metaplanet then acquired 42.46 BTC on July 8 and the most recent 21.877 BTC on July 16. The firm stated that the average purchase price of all its BTC holdings was 9.96 million yen (approximately $63,250) per Bitcoin.

Metaplanet Stock Soars 20% in 24 Hours, Up 981% YTD

The company’s recent purchase and the BTC’s surge appear to have impacted Metaplanet’s stock prices. According to Google Finance data, shares rose by 19.31% to 173 yen ($1.10) just after the announcement. The firm’s stock has recently demonstrated a bullish trend, with a 51% increase this week and an 82% rise over the past 30 days. These gains have pushed the year-to-date performance to over 900%.

The recent stock surge following the announcement indicates growing optimism in the digital asset market after weeks of stagnant trading. Bitcoin is currently priced at $67,420, reflecting a 7.54% increase over the past week. Similarly, altcoins and meme tokens have seen significant gains, with some reaching double-digit increases.

The firm has been compared to MicroStrategy for its similar strategy of adopting Bitcoin for long-term holding. According to BitcoinTreasuries.net, as of July 21, MicroStrategy holds 226,331 BTC, valued at $14.6 billion. Jason Fang, founder of Sora Ventures, called Metaplanet “Asia’s first MicroStrategy,” noting that the company provides the Japanese market with exposure to BTC while mitigating regulatory risks. Fang’s endorsement comes as he prepares to join the new Metaplanet board.