Metaplanet, known as “Asia’s MicroStrategy,” experienced a significant surge in its shares on Tuesday following the announcement of its third million-dollar Bitcoin purchase in seven weeks.
In a statement released on June 11, the company disclosed the acquisition of 23.25 Bitcoin valued at nearly $1.59 million, increasing its total Bitcoin holdings to 141.07 Bitcoin worth $9.6 million. The average purchasing price per Bitcoin was 10,278,391 Japanese yen ($65,365).
With Bitcoin’s current price at $68,313, Metaplanet has seen a 4.5% increase in its Bitcoin investment, according to CoinGecko.
Investors responded positively to the news, causing Metaplanet’s stock to rise by 10.8% to 92 yen ($0.59), before stabilizing at 89 yen ($0.57) by midday on the Tokyo Stock Exchange on June 11, as reported by Google Finance.
Since unveiling its Bitcoin investment strategy on April 9, 2024, Metaplanet has witnessed a substantial increase in its stock value, nearly quintupling in value. The company made its initial Bitcoin purchase on April 23, acquiring 97.85 Bitcoin, followed by an additional 19.87 Bitcoin on May 10. As a result, Metaplanet now ranks as the 30th-largest corporate holder of Bitcoin globally.
Taking a cue from MicroStrategy, the firm announced on May 13 that it will diversify its capital market instruments to strengthen its Bitcoin reserves. This strategic move aims to mitigate Japan’s escalating debt burden and the devaluation of the Japanese yen.
Metaplanet highlighted Japan’s debt-to-GDP ratio of 261%, the highest among developed nations, to underscore the urgency for adopting Bitcoin as a hedge. The yen has depreciated by nearly 35% against the US dollar since January 2021, while Bitcoin has surged by almost 200% against the yen in the past year.
Despite its commendable Bitcoin holdings, Metaplanet lags behind MicroStrategy, which possesses 214,400 Bitcoin, equivalent to 1.02% of the total Bitcoin supply.
Currently, Metaplanet is only listed on the Tokyo Stock Exchange, limiting access for US investors. However, efforts are underway to expand its reach to a broader investor base.