Metaplanet Shares Climb 6% After Buying More Bitcoin (BTC)

Today, Metaplanet Inc., a Japanese investment firm, revealed that it has acquired an additional 38.464 BTC, approximately valued at 300 million yen ($2 million).

This latest purchase elevates the firm’s total Bitcoin holdings to 398.832 BTC, equating to about 3.75 billion yen ($26 million).

Metaplanet’s Shares Surge 5.87%

In response to the announcement, the company’s stock experienced a boost of 5.87% on Tuesday, trading at 1,101 yen after reaching a peak of 1,185 yen earlier in the day, as per Google Finance.

In recent months, Metaplanet has made numerous Bitcoin acquisitions. The company first declared its strategy to adopt Bitcoin as a treasury reserve asset back in May, citing this decision as a protective measure against Japan’s economic hardships.

*Metaplanet acquires an additional 38.46 $BTC* pic.twitter.com/vdnRt8O07c

— Metaplanet Inc. (@Metaplanet_JP) September 10, 2024

“This decision is a direct reaction to ongoing economic challenges in Japan, including high levels of government debt, extended periods of negative real interest rates, and a consequently weak yen.”

Metaplanet’s investment strategy bears similarities to that of MicroStrategy, a U.S.-based software company led by Michael Saylor, which is known to be the largest corporate holder of Bitcoin with over 226,500 BTC, as reported by BitcoinTreasuries data.

Often referred to as “Asia’s MicroStrategy,” the company tends to follow strategies akin to the American business intelligence firm, financing its Bitcoin purchases through bond offerings.

This latest acquisition of 38.464 BTC follows previous purchases, which include 42.4 BTC in July, 19.87 BTC in May, and 97.85 BTC in April. Earlier this year, the company also obtained a $6.8 million loan to bolster its Bitcoin holdings further.

Partnership with SBI VC Trade

In another development, the investment firm recently announced a partnership with SBI VC Trade, the cryptocurrency branch of Japan’s major financial group, SBI Group.

This collaboration provides Metaplanet with access to a compliant corporate custody solution designed to enhance tax efficiency while utilizing Bitcoin as collateral for financing.

SBI will also offer trading, storage, and operational support, reinforcing Bitcoin’s unique position as a non-political financial asset.

According to the company statement, this partnership is part of Metaplanet’s broader strategy to engage industry leaders in Japan, emphasizing its ongoing Bitcoin accumulation efforts.

On Monday, they also revealed that the management would exercise the 11th series of stock acquisition rights, raising an additional 299.7 million yen, with plans to use the funds for further Bitcoin purchases.