As a seasoned crypto investor with roots deeply entrenched in the dynamic world of digital assets, I find myself consistently intrigued by the strategic moves of forward-thinking entities like Metaplanet. Their unwavering commitment to Bitcoin, even amidst market turbulence, is reminiscent of a samurai standing firm against the stormy seas, undeterred by the tempest’s fury.
Tokyo-based company Metaplanet, known as Japan’s equivalent to MicroStrategy, has added more Bitcoin to its portfolio, demonstrating its commitment to a bold investment strategy even amidst market volatility. On October 7, the firm disclosed that it had purchased 108.786 BTC, valued around 1 billion yen ($6.7 million).
Regardless of the recent market turbulence that saw more than $123 million in leveraged Bitcoin positions being liquidated within a day, Metaplanet remains optimistic about Bitcoin’s future prospects. Their approach echoes that of MicroStrategy, with CEO Michael Saylor being an active proponent for businesses to hold Bitcoin as part of their reserve assets.
Metaplanet’s Bitcoin Holdings Now Stands at $40M
Based on the announcement, Metaplanet has recently purchased Bitcoin at an average cost of around $61,880 per unit, amounting to roughly 6 billion yen in total. This latest investment increases their Bitcoin holdings to approximately 639.503 BTC. On average, these purchases were made for approximately $62,789 per BTC.
In May 2024, an Asian firm gained attention by announcing it would keep Bitcoin as its main treasury reserve asset, following a strategy similar to MicroStrategy’s. This decision is a part of the company’s plan to utilize Bitcoin to protect itself from the weakening Japanese yen.
After that point, this Tokyo-based company has consistently boosted its Bitcoin reserves, carrying out frequent purchases even amidst market ups and downs.
A week prior, on October 1, the company made a purchase of 107.913 Bitcoins for approximately 1 billion yen or $6.9 million. At that point in time, the total value of their Bitcoin holdings was around $32.2 million.
That same week, Metaplanet revealed it had earned 23.9 BTC ($1.4 million) in premium income by selling 223 Bitcoin put options to Singapore-based QCP Capital. The company noted that the transaction allowed it to capitalize on Bitcoin’s volatility while maintaining a fully cash-backed position.
Metaplanet’s Stock Rose Nearly 8%
Metaplanet’s shares skyrocketed approximately 8% early Monday, as reported by Google Finance, due to excitement over their Bitcoin acquisition. This was a dramatic turnaround from five consecutive days of decline, during which the stock dropped as much as 12%, only to bounce back unexpectedly.
The stock has seen a staggering 517.50% increase year-to-date, driven by the company’s decision to adopt Bitcoin as its corporate reserve asset. This surge has boosted Metaplanet’s valuation to 36.95 billion yen ($248.87 million). With a bullish market expected in October, analysts predict further growth as the company is likely to continue adding Bitcoin to its portfolio.
Currently, as I’m typing this, Bitcoin is being exchanged for approximately $63,365, marking a 2.28% increase over the past day.
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2024-10-07 12:00