Metaplanet Buys $2 Million More in Bitcoin, Holds About 400 BTC

Highlights:

• Metaplanet purchased an additional 38.464 Bitcoin, raising its total holdings.
• The firm’s strategy mirrors MicroStrategy’s, which is driven by institutional interest and economic pressures.
• Stock rises 4.42% amid Bitcoin investment and new partnerships.

Metaplanet, a Japanese publicly traded company often referred to as “Asia’s MicroStrategy,” announced today that it purchased an additional 38.464 Bitcoin worth about 300 million yen ($2 million). The latest purchase brought the firm’s total Bitcoin holdings to 398.832 BTC, worth approximately 3.75 billion yen ($26 million). Metaplanet’s commitment to expanding its cryptocurrency portfolio reflects the growing trend of institutional investors seeking to invest in the largest cryptocurrency.

*Metaplanet purchases additional 38.46 $BTC* pic.twitter.com/vdnRt8O07c

— Metaplanet Inc. (@Metaplanet_JP) September 10, 2024

The announcement followed Metaplanet’s Monday statement that its management team would exercise the 11th series of stock acquisition rights, enabling executives to buy company shares at a fixed price. The ¥229.7 million raised from this exercise will be invested in Bitcoin, as the company previously announced. The management team is confident that Bitcoin will remain a valuable asset.

*Exercise of the 11th Series of Stock Acquisition Rights by Metaplanet Management* pic.twitter.com/V7qzoHWrSM

— Metaplanet Inc. (@Metaplanet_JP) September 9, 2024

Metaplanet’s stock traded 4.42% higher on Tuesday in Japan, reaching approximately 1,086 yen after hitting a peak of around 2,000 yen earlier, according to Yahoo Finance. The stock is still active in the afternoon session. Meanwhile, the Nikkei 225 index stayed nearly flat, rising just 0.02%.

Metaplanet Expands Bitcoin Holdings and Partners with SBI for Enhanced Services

In recent months, Metaplanet has been actively purchasing Bitcoin following its May announcement of adopting Bitcoin as its strategic treasury reserve asset. “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,” the firm said at the time.

Earlier this month, Metaplanet partnered with SBI VC Trade, SBI Group’s crypto investment arm, to enhance its Bitcoin custody and trading services. This collaboration aims to improve access to compliant corporate custody services, optimize tax efficiency, and utilize Bitcoin as collateral for financing.

SBI will support Metaplanet with trading, storage, and operational services, emphasizing Bitcoin’s distinctive value as a non-political financial asset. Additionally, SBI’s tax exemption service will benefit “Asian MicroStrategy” by facilitating long-term corporate crypto holdings.

Metaplanet has attracted attention for its steady Bitcoin acquisitions. The firm’s investment strategy resembles that of MicroStrategy, using Bitcoin as a hedge against yen depreciation and Japan’s high government debt. According to BitcoinTreasuries data, MicroStrategy, led by Michael Saylor, is the largest corporate Bitcoin holder with 226,500 BTC. Marathon Digital ranks second with 25,000 BTC.

Bitcoin Price Reaction

Recent data indicates that Bitcoin has risen by 3.89% in the past 24 hours, with its trading price at $56,904. However, the price of the largest cryptocurrency has fallen by 3.47% over the last 7 days.

This year, Bitcoin reached an all-time high driven by institutional demand following the SEC’s approval of spot Bitcoin ETFs in the United States. Consequently, traditional institutions expanded their exposure to the asset, pushing its price up. In a related development, the Proof of Workforce Foundation (POWF) and Careers in Government Inc. have teamed up to incorporate Bitcoin into public sector employment. Their main focus is on integrating the asset into welfare packages, emphasizing innovation. This move, along with Metaplanet’s recent purchases, highlights growing demand in the sector.