Metaplanet to Buy Another Tranche of 200 Million Yen Worth of Bitcoin

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As a seasoned crypto investor with a background in Japanese economics, I’m excited to see Metaplanet’s recent move to acquire additional Bitcoin as part of its treasury reserves. This strategic decision comes amidst Japan’s persistent economic challenges and the subsequent depreciation of the Japanese yen.

Following the green light from its board of directors, Metaplanet, an investment and consulting company based in Tokyo, obtained 20.195 Bitcoins (BTC) through a purchase.

I analyzed the firm’s latest announcement made on their X account on Monday, which included a screenshot of a Bitcoin purchase. This transaction underscores the increasing global fascination among institutional investors towards the dynamic and expanding cryptocurrency market.

Choosing Bitcoin as Primary Treasury Reserve Asset

Metaplanet has shown strong interest in obtaining the premier digital currency by making several significant purchases this year. In May alone, the company spent around ¥200 million, or approximately $1.25 million, on Bitcoin. This transaction involved the purchase of 19.87 Bitcoins, with an average price of 10,065,548 yen per Bitcoin. Following this, Metaplanet had previously invested ¥1 Billion, which was roughly equivalent to $6.25 million, in Bitcoin.

*Metaplanet purchases additional 20.20 $BTC*
— Metaplanet Inc. (@Metaplanet_JP) July 1, 2024

As a researcher examining Metaplanet’s investment strategies, I have noticed a growing interest in actively acquiring Bitcoins. This shift may be attributed to Japan’s economic troubles, which have intensified recently. These persistent challenges have compelled Metaplanet to reconsider its approach. Unfortunately, these economic woes have led to a depreciation of the Japanese yen and an escalating national debt.

As a crypto investor, I would express it this way: Metaplanet made the strategic decision to hold Bitcoin as our main reserve asset. We’re not alone in this choice; many other institutions are turning to cryptocurrencies like Bitcoin as they search for reliable alternatives to conventional fiat currencies during these uncertain economic times.

One week ago, the Japanese company alluded to its intention to buy an extra 1 billion yen ($6.26 million) worth of Bitcoin. Metaplanet disclosed that the necessary funds for this Bitcoin purchase would be obtained through a forthcoming bond offering. The annual interest rate for these bonds is 0.5%, with maturity scheduled for June 25, 2025. This marks the second time the company has announced an ordinary bond issue backed by guarantees.

Metaplanet intends to buy a total of 1 billion yen in Bitcoin this season, with the recently announced acquisition being just a portion worth approximately 200 million yen, or $1.24 million. The average price Metaplanet pays for each Bitcoin is around $61,527.

As a financial analyst, I’ve examined Metaplanet’s Bitcoin holdings to date. Currently, we own 161.26 Bitcoin units. Each coin was purchased at an average price of approximately $63,580. Consequently, the value of our Bitcoin holding stands at around $10.25 million.

MicroStrategy Leads with Its Bitcoin Acquisition Strategy

Significant difference: The amount of Bitcoin held by Metaplanet pales in comparison to MicroStrategy Inc.’s (NASDAQ: MSTR) holdings.

Michael Saylor’s company made a comparable move to Metaplanet’s in August 2020 when the COVID-19 pandemic struck. MicroStrategy, which owns a substantial Bitcoin holding among business intelligence firms, continues to expand its Bitcoin collection. Recently, they purchased an extra 11,931 Bitcoins for $786 million.

At present, our company owns a significant amount of Bitcoins numbering 226,331, which translates to a value close to $15 billion based on the current market price of $63,342.11 per Bitcoin. It’s important to note that an increasing number of institutional investors are entering the crypto sector via Bitcoin Exchange-Traded Funds (ETFs).

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2024-07-01 11:19