As a seasoned researcher with a keen interest in both finance and technology, I find the recent moves by Metaplanet to be intriguing. It seems we have our own ‘Japanese MicroStrategy’ here, boldly investing in Bitcoin as a strategic reserve asset.
As a crypto investor, I’m excited to share that today, I’ve made a strategic move by investing an extra $2 million in Bitcoin. This decision is a testament to my unwavering faith in the forefront digital asset, reiterating our trust in its potential as the leading player in the cryptocurrency market.
‘Japanese MicroStrategy’ Bolsters Its Bitcoin Reserves
On September 10, 2024, Metaplanet revealed they’d purchased 38.464 Bitcoin, amounting to roughly 300 million yen or $2 million.
The latest purchase brings Metaplanet’s total holdings to 398.832, with a total aggregate cost of 3.75 billion yen ($26 million), averaging slightly above $65,700 per BTC.
Over the last 24 hours, the price of Bitcoin has increased by 3.4%, currently standing at $57,159. It’s worth noting that there are predictions that the US Federal Reserve will initiate a series of interest rate cuts starting next week. Many analysts believe that this move to inject more liquidity into the economy could positively impact riskier assets like Bitcoin.
Based on Google Finance’s data, shares of Tokyo-listed Metaplanet were being traded at approximately 1101 yen ($7.7), marking a 5.87% increase in today’s market activity. In contrast, the Nikkei 225 index experienced a minor decrease of 0.16%.
Yesterday, it was announced that Metaplanet’s management intends to activate their 11th round of buying shares using a specific right. These rights are expected to generate approximately 299.7 million yen ($2.10 million). The company highlighted that these funds will be allocated towards the acquisition of additional Bitcoin.
In simple terms, for those keeping tabs on the crypto world, you might recall that Metaplanet announced in May 2024 its intention to incorporate Bitcoin as its primary strategic reserve asset. The company highlighted its commitment to a “Bitcoin-centric” approach, similar to MicroStrategy’s stance.
By July 2024, Metaplanet augmented its Bitcoin reserves by approximately 20,195 coins, valued at roughly $1.2 million based on current market rates. Over the past few months, Metaplanet has been steadily acquiring Bitcoins, which now amounts to nearly 400 in total.
Following In The Footsteps Of MicroStrategy
Metaplanet’s choice to keep Bitcoin as a tactical reserve asset is not an unprecedented move for publicly traded companies; in fact, the U.S.-based company, MicroStrategy, has been a strong proponent of Bitcoin’s dependability compared to most institutions.
On August 8, 2024, Michael Saylor from MicroStrategy disclosed that he personally holds over a billion dollars’ worth of Bitcoin and has no immediate intentions to sell it. This personal stash should not be mixed up with the massive 226,500 BTC owned by MicroStrategy itself, which is currently valued at approximately $13 billion in the market.
More recently, Saylor projected that the value of Bitcoin might reach an astounding $13 million per BTC by the year 2045. This projection is based on the notion that currently, Bitcoin represents a mere 0.1% of the world’s total capital. If this percentage were to increase to 7%, each unit of Bitcoin could potentially be worth $13 million.
That being said, it’s probably wise not to think too far ahead and consider some of the immediate challenges that Bitcoin might face. For instance, all eyes will be on the US Federal Reserve next week as there are fears that slashing the interest rates by too much, too quickly, might adversely affect BTC prices.
Cover image from Unsplash, chart from Tradingview
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2024-09-11 01:34