Japanese investment company Metaplanet made a strategic acquisition of 619.7 Bitcoin for around $60M, reinforcing its status as one of the largest corporate holders of cryptocurrency in Asia.
Aggressive Bitcoin Buying Strategy
Metaplanet's latest acquisition is nearly four times the size of its previous record purchase of 159.7 BTC on October 28. This move advances their strategy of managing economic risks in Japan using Bitcoin as a hedge against yen depreciation. The median purchase price was around $75,600 per BTC, illustrating the firm’s strategy of buying the asset at favorable rates. Metaplanet continues to increase BTC holdings through capital markets and revenue financing, drawing comparisons to MicroStrategy’s approach outside the US. It now ranks as the twelfth largest public Bitcoin holder, following Semler Scientific.
Metaplanet’s Bitcoin Treasury Business and BTC Yield Metric
During its strategy development process, Metaplanet announced the establishment of a new Bitcoin Treasury unit. The firm plans to utilize the token beyond acquisition, via loans, equities, and convertible bonds to support its positions. A filing on December 18 indicated that while no convertible bonds for Bitcoin had been offered, they might be in the future. To assess investment performance, Metaplanet adopted 'BTC Yield' as a key metric.
Rising Share Prices and Effects on Bitcoin Price
Metaplanet pursued an aggressive strategy throughout the year, significantly boosting its stock prices. Last week, the company's shares reached a record 4,080 Japanese yen. Despite this, market dynamics led to a decline in stock price last month, but following the December 23 announcement, it rose by 5%. The company announced plans to raise over $62 million (9.5 billion yen) through a stock acquisition program for further Bitcoin purchase amid market volatility.
The $60M Bitcoin purchase underscores Metaplanet's long-term strategy to strengthen its presence in the cryptocurrency world, significantly impacting the market in Japan and beyond.
