As a seasoned crypto investor with a knack for spotting trends and understanding financial strategies, I find Metaplanet’s aggressive Bitcoin acquisition strategy quite intriguing. Having witnessed the rise of MicroStrategy in the U.S., it’s fascinating to see a similar narrative unfold in Asia with Metaplanet.
Metaplanet, a publicly traded financial services company based in Japan, has expanded further into the cryptocurrency sector this month through the acquisition of more Bitcoin. This move increased their Bitcoin holdings by about 108.999 Bitcoins, bringing their total Bitcoin reserves to roughly 748.502 Bitcoins. The current value of these Bitcoins is approximately $60,703 each, with a 24-hour volatility of just 0.5%. As of now, the market capitalization of Bitcoin stands at around $1.20 trillion, with a 24-hour trading volume of $31.15 billion.
On October 11th, Metaplanet disclosed that they had invested approximately ¥1 billion, which is around $6.5 million in U.S. currency, in their most recent Bitcoin buy. This transaction was carried out at an average cost of 9,174,396 yen per BTC, which translates to roughly $60,000 for one Bitcoin based on current exchange rates.
Metaplanet Adopts Bitcoin
The first day of the current month saw Metaplanet purchasing about 1 billion yen ($6.9 million) worth of Bitcoin (107.913 BTC). Since that time, the company has continued its Bitcoin buying frenzy, with another round of crypto asset acquisitions taking place last week. To date, this month has seen Metaplanet amass over 300 Bitcoin.
This continuous buildup forms part of the company’s wider plan to strengthen its Bitcoin holdings, which serve as a significant treasure trove asset.
Metaplanet’s recent actions follow the growing practice among corporations of investing in Bitcoin, a trend sparked by Bitcoin’s promise as a safeguard against inflation and economic uncertainty. These companies are drawn to Bitcoin because of its potential protective role. Other Asian businesses like Nexon and Meitu have also hopped on the crypto bandwagon.
A Unique Strategy in Play
As an analyst, I’ve observed a unique investment approach taken by Metaplanet. Unlike many other companies, they have integrated the use of put options into their Bitcoin strategy. Put options are a type of financial derivative that grants the buyer the privilege, not the requirement, to sell an asset at a specified price (the strike price) within a defined timeframe. This strategy allows Metaplanet to potentially benefit from potential decreases in the price of Bitcoin, providing a hedge against market volatility.
On October 3rd, a Japanese company disclosed that they had purchased 223 contracts for Bitcoin put options with a value of $62,000 per contract. These contracts expire on December 27th. This deal allowed the company, Metaplanet, to acquire approximately 23.97 more Bitcoins, worth around $1.46 million at the time, increasing their total Bitcoin holdings significantly.
According to Simon Gerovich, CEO of Metaplanet, this approach allows the company to grow its Bitcoin holdings while minimizing potential financial risks. In other words, they intend to employ option trading techniques with a portion of their assets in order to earn profits.
Asia’s MicroStrategy
In May 2024, Metaplanet embarked on its Bitcoin adventure by revealing that they would hold Bitcoin as their reserve currency, similar to MicroStrategy, a prominent U.S. company specializing in business intelligence.
By adopting Bitcoin, Metaplanet became known as “Asia’s MicroStrategy,” marking it as the first company in the region to utilize Bitcoin as a safeguard against the weakening Japanese yen.
Over the course of that period, the company’s shares, traded in Tokyo, have experienced a remarkable transformation, increasing roughly 500% since the beginning of the year, based on information from Google Finance. Additionally, there was a 5% rise in the share price within the last day.
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2024-10-11 11:37