Metaplanet Purchases 619.7 Bitcoin for $60M in Major Acquisition

Highlights:

• Metaplanet buys 620 Bitcoin for $60M, raising its total holdings to 1,762 BTC. 
• The firm funds Bitcoin buys with bonds and stock programs worth $60.6M. 
• Metaplanet stock jumps 2,000% this year as Bitcoin drives profit growth. 

Japanese investment firm Metaplanet bought 619.7 Bitcoin, marking its largest acquisition yet. The company spent $60 million buying the Bitcoin at an average price of $96,000 per coin. This is after a separate purchase of 159.7 Bitcoin in October. The company now owns 1,762 Bitcoin, worth around $168 million. The company’s average acquisition price per Bitcoin is $75,600. 

*Metaplanet purchases additional 619.70 BTC* pic.twitter.com/5npflMJ3kW

— Metaplanet Inc. (@Metaplanet_JP) December 23, 2024

The recent Bitcoin price dip presented a golden opportunity for Metaplanet. The move is in line with its strategy of amassing Bitcoin as a company asset. The company wants to protect its capital from a weakening Japanese Yen. 

Expanding Bitcoin Treasury Operations

Metaplanet recently announced plans to expand its Bitcoin operations. Specifically,  it intends to integrate loans, equity, and other financial instruments into its strategy. These measures aim to enhance the firm’s Bitcoin-related activities and shareholder value. 

In November, the company launched a stock acquisition program to raise $62 million. Moreover, these funds are designated for additional Bitcoin purchases. Metaplanet has seen a huge spike in its Bitcoin yield over the past quarter. The yield rocketed to 310% in the quarter from 41.7% the previous quarter. 

The company has also funded its Bitcoin strategy. Last week, it issued two zero-interest bonds worth $60.6 million, which mature in June 2025. The proceeds of these bonds were directed towards Bitcoin acquisitions. 

Innovative Financial Strategies to Support Bitcoin Purchases

Metaplanet employed several financial mechanisms to support its Bitcoin purchases. Selling Bitcoin put options generated respective incomes. This last quarter, the company earned 520 million yen by implementing this strategy. 

A put option is a contract to sell Bitcoin at a pre-agreed strike price. For each contract sold, Metaplanet earns a premium. The company can buy Bitcoin at the agreed price by exercising it. This is in line with its long held strategy of growing its Bitcoin balance. 

The company also raised capital by issuing stock acquisition rights and bonds. This allowed Metaplanet to continue with its acquisition strategy. The company significantly improved its financial performance by adding Bitcoin to its balance sheet. 

Stock Performance and Future Outlook for Metaplanet

Its stock price has skyrocketed due to the company’s Bitcoin strategy. The stock grew 1,982% in the year to hit an all-time high of 4,250 yen. However, it recently corrected by 20%, trading at 3,540 yen. 

METAPLANET RAISES $61M IN BONDS TO BUY MORE BTC—AND THEY’RE NOT DONE

Japanese investment firm Metaplanet has added another 619.7 BTC to its vault, with the average price hitting $97,786 per coin.

With their stock surging 1,982% YTD, this Tokyo-listed firm seems determined to… pic.twitter.com/ewn8HR4W4K

— Crypto Town Hall (@Crypto_TownHall) December 23, 2024

The company is now valued at over $1 billion. It anticipates its first consolidated operating profit in seven years. For the fiscal year ending December 31, revenue is expected to reach 890 million yen. That is a sharp jump from 261 million yen in the previous year. 

It is projected that operating profit will be 270 million yen, a huge turnaround from the 468 million yen loss seen in the previous year. This comes largely from Bitcoin related activities. The purchase comes at a time when Bitcoin is experiencing a price correction. BTC is currently trading at $95,681 with a 1.33% decline in the past day.