Metaplanet, a Japanese investment and consulting firm listed on the stock market, is increasing its investment in Bitcoin despite a decrease in BTC prices. The company has injected additional capital to purchase more of the cryptocurrency.
Metaplanet officially announced on July 7 that it has purchased an additional 42,466 bitcoins for 400 million Japanese yen ($2.5 million). This brings their total holdings to 203,734 BTC, which were bought at an average price of around 10 million yen ($62,000) per coin. The average purchase price is approximately 7% higher than the current price of BTC.
Metaplanet made a significant move into the world of Bitcoin in April 2024 when it adopted Bitcoin as a treasury asset and made its first Bitcoin purchase for $6.5 million. The company received support from prominent individuals in the industry, such as Mark Yusko, the founder of Morgan Creek Capital, Jack Liu, a founding member of Ordiswap, and companies like Sora Ventures and UTXO Management.
Being compared to “Asia’s MicroStrategy,” Metaplanet’s aggressive approach to buying Bitcoin mirrors MicroStrategy’s strategy in 2020. MicroStrategy began purchasing Bitcoin as a hedge against inflation and an alternative to holding cash. As of June 24, they had accumulated at least 226,331 Bitcoins at a cost of $7.538 billion, or $35,158 per BTC.
Metaplanet’s foray into Bitcoin has had a significant impact on its market momentum. The company’s stock price increased by approximately 90% after the announcement, but it experienced a decline due to the drop in Bitcoin’s price. After reaching its peak at 107 yen ($0.66) on June 11, Metaplanet’s stock dropped by 25% as Bitcoin’s price fell from around $70,000 to below $60,000. However, despite this decrease, the stock is still trading at 80 yen ($0.5), which is 344% higher than its value at the beginning of 2024.
In late June, Metaplanet revealed its plan to issue 1 billion yen ($6.26 million) worth of bonds to raise funds for further Bitcoin purchases. This strategy is similar to what Michael Saylor’s MicroStrategy has done in 2024, as they have repeatedly announced convertible note raises to invest more in Bitcoin.
Overall, Metaplanet’s investment in Bitcoin has made waves in the market, with its stock price fluctuating and the company increasing its holdings of the cryptocurrency.