Japanese investment firm Metaplanet recorded a 14% increase in its stock price after purchasing ¥1 billion ($6.8 million) worth of Bitcoin.
Bitcoin Purchase
On August 20, Metaplanet, owned by CEO Simon Gerovich, acquired 57.273 BTC for ¥500 million ($3.4 million). This acquisition increased the company’s total Bitcoin reserves to 360.368 BTC. The purchase was made as part of Metaplanet’s plan to utilize a ¥1 billion loan from MMXX Ventures to increase its Bitcoin holdings.
Company Statement
In a statement, Simon Gerovich pointed to the recent purchase: “As disclosed in our announcement dated August 8, 2024, regarding the loan and purchase of Bitcoins worth 1 billion yen, we hereby announce that we have purchased an additional 500 million yen worth of Bitcoins. With this purchase, we have completed the purchase of 1 billion yen worth of Bitcoins.”
Implications and Future Plans
Originally a hotel development company, Metaplanet now expands into Bitcoin promotion, property, and venture. Trading on the Tokyo Stock Exchange under the symbol 3350, the company’s shares have risen in value since the company’s decision to adopt Bitcoin to address Japan’s economic issues. Gerovich pointed out that the company was previously in crisis but was revived by Bitcoin. He considers Bitcoin the 'ultimate monetary instrument' and an integral component of Metaplanet’s financial plan. Metaplanet’s high-risk Bitcoin investment strategy is paying off, increasing investor confidence and its stock price.
Metaplanet’s aggressive accumulation of Bitcoin could be emulated by other companies in similar economic uncertainty.
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