Metaplanet, an investment firm known for stacking Bitcoin, has made another substantial purchase amid Bitcoin’s recent rally, driving prices close to $65,000. Here are the key details:
Bitcoin Purchase Details:
- On July 16, Metaplanet announced the acquisition of 21.88 Bitcoin, valued at over $1.2 million (approximately 200 million Japanese yen). This brings their total Bitcoin holdings to 225.6 Bitcoin, worth $14.6 million at current prices.
- Earlier in July, specifically on July 7, Metaplanet purchased an additional 42.46 Bitcoin for $2.5 million (400 million yen), capitalizing on a price dip in the market.
Market and Share Price Impact:
- Following these purchases and Bitcoin’s 4.4% price increase over the last 24 hours preceding the announcement, Metaplanet’s stock price surged significantly. On the Tokyo Stock Exchange, their share price spiked by 25.8% to $0.74 (117 yen) within the first two and a half hours of trading on July 16.
- Since unveiling its Bitcoin investment strategy on April 9, 2024, Metaplanet’s stock price has risen nearly six-fold, reflecting growing investor confidence in their approach.
Strategic Resemblance to MicroStrategy:
- Metaplanet has drawn comparisons to MicroStrategy, often dubbed “Asia’s MicroStrategy,” due to its strategy mirroring that of Michael Saylor’s firm in 2020. Like MicroStrategy, Metaplanet aims to bolster its Bitcoin reserves using a variety of capital market instruments.
- The firm’s rationale for this strategy includes hedging against Japan’s increasing debt burden and the depreciation of the Japanese yen. The yen has declined approximately 54% against the US dollar since January 2021, whereas Bitcoin has appreciated by over 145% against the yen over the past year.
Current Bitcoin Market Performance:
- As of the latest update, Bitcoin is trading at $64,640, reflecting a 13.6% increase over the past week and indicating robust market momentum amidst renewed investor interest and broader market recovery.
Metaplanet’s proactive approach in accumulating Bitcoin underscores its commitment to leveraging cryptocurrencies as a strategic asset amid global economic uncertainties and currency fluctuations.
