Japanese investment firm Metaplanet Inc. has made a significant move in the cryptocurrency market by purchasing 107.913 Bitcoin, amounting to ¥1 billion (approximately $6.9 million). This latest investment comes as Bitcoin saw nearly a 10% price surge in September, reflecting the firm’s confidence in the world’s largest digital asset.
With this acquisition, Metaplanet joined prominent companies like MicroStrategy and Marathon Digital, known for their substantial Bitcoin holdings. The firm’s growing commitment to Bitcoin signals its strategic focus on the digital asset market.
¥1 Billion bets on Bitcoin
According to the company’s filings, Metaplanet purchased Bitcoin at an average price of ¥9.26 million ($64,168) per BTC, adding 107.913 BTC to its portfolio. With this new acquisition, the company’s total Bitcoin holdings have increased to 506.745 BTC, valued at approximately $32.2 million at current market prices. Over time, Metaplanet has invested ¥4.75 billion in Bitcoin, with an average acquisition price of ¥9.37 million ($64,931) per Bitcoin.
This growing investment further highlights Metaplanet’s increasing stake in Bitcoin, showing its confidence in its long-term potential. The move aligns with a broader trend among institutional investors who see Bitcoin as a valuable asset amid economic uncertainties.
Metaplanet’s stock reaction
Following the announcement of the Bitcoin purchase, Metaplanet’s stock surged by over 4%, reaching ¥1,049 per share. However, the stock has since leveled off, trading at an average price of ¥1,008. Despite the stock’s slight pullback, the firm’s Bitcoin-focused strategy appears to have positively impacted its market perception.
As the cryptocurrency market continues to show volatility, Bitcoin has experienced a marginal decline over the last 24 hours. At the time of writing, Bitcoin is trading at $63,974, just below the $64,000 mark. However, the asset’s 24-hour trading volume increased by 69%, reaching $35.4 billion. On a year-to-date basis, Bitcoin remains up by 51%, further bolstering investor interest.
Bitcoin as a strategic asset
Earlier this year, Metaplanet decided to adopt Bitcoin as a reserve asset. This move was intended to hedge against the volatility of the Japanese yen and strengthen the firm’s financial positioning. The strategy bears similarities to MicroStrategy’s approach, which has been accumulating Bitcoin for over four years and now holds more than 1% of the total Bitcoin supply.
In addition to its Bitcoin acquisitions, Metaplanet secured a ¥1 billion loan in August from its shareholder, MMXX Ventures, to further enhance its purchases. The loan carries an interest rate of 0.1% annually and is entirely allocated for buying additional Bitcoin.
Metaplanet’s increasing Bitcoin holdings reflect the growing trend among institutional investors who view cryptocurrency as a hedge against traditional market risks. As the company continues to increase its exposure to Bitcoin, its evolving strategy mirrors the broader institutional shift towards digital assets.