On Tuesday, Tokyo-listed Metaplanet Inc. announced the acquisition of an additional $6.8 million in Bitcoin, increasing their total Bitcoin holdings to $56 million (855.478 BTC).
This latest update highlights the company’s ongoing intense buying strategy, which began in April 2024. To date, they have invested approximately $53 million (¥7.965 billion Japanese yen) in Bitcoin at an average price of $61,663 USD per BTC.
Metaplanet’s approach has led to comparisons with MicroStrategy, known for its substantial Bitcoin accumulation as part of its corporate treasury strategy. Similarly, Metaplanet views Bitcoin as a long-term asset aimed at enhancing shareholder value, branding itself as “Asia’s answer to MicroStrategy” upon the announcement of its Bitcoin treasury strategy.
MicroStrategy, under the leadership of Michael Saylor, holds over 252,000 BTC, making it the largest holder of Bitcoin among corporations by a significant margin. Marathon Digital, a Bitcoin mining company, follows with 26,842 BTC, as reported by BitcoinTreasuries. However, Metaplanet’s increasing purchase frequency places it as a notable contender, particularly among companies based in Asia.
Peter Chung, the Head of Research at Presto Labs, a quantitative trading firm in Singapore, told Decrypt that Metaplanet is “one of three public companies in Asia actively acquiring BTC for their treasury, alongside Nexon and Meitu.”
Chung further mentioned that what distinguishes Metaplanet from many other corporate Bitcoin purchasers is its advanced strategy of selling put options along with its Bitcoin purchases to create additional yield.
“Metaplanet’s strategy enables them to take advantage if BTC prices drop, showcasing a level of sophistication rarely seen among other companies,” said Chung.
The company’s ongoing investments in BTC reflect a broader trend among businesses integrating cryptocurrency assets into their long-term investment strategies. Their approach aligns with that of major firms like Tesla, Block Inc. (formerly Square), and PayPal, all of which have incorporated Bitcoin into their balance sheets in recent years.
For example, Tesla made headlines in 2021 with its $1.5 billion investment in Bitcoin, although it later divested a portion of its assets. Similarly, Block Inc. invested $50 million in 2020 and an additional $170 million in 2021, signaling an increasing corporate confidence in Bitcoin as a lasting asset.
On Tuesday, Metaplanet’s stock rose 15%, reaching 1,105 JPY or roughly $7.42 USD, based on data from Google Finance.
Edited by Stacy Elliott.
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