Metaplanet, often dubbed as “Asia’s MicroStrategy,” witnessed a significant surge in its shares on Tuesday following the announcement of its third million-dollar Bitcoin purchase in just seven weeks. The company’s statement on June 11 disclosed the acquisition of 23.25 Bitcoin, valued at nearly $1.59 million. This latest purchase brings Metaplanet’s total Bitcoin holdings to 141.07 Bitcoin, equivalent to $9.6 million, with an average purchase price of 10,278,391 Japanese yen per Bitcoin.
This move has proven profitable for Metaplanet, as it currently enjoys a 4.5% gain on its Bitcoin investment based on Bitcoin’s current price of $68,313, as reported by CoinGecko.
Investors showed a positive response to this development, as Metaplanet’s stock price surged by 10.8% to 92 yen before settling at 89 yen on the Tokyo Stock Exchange by midday on June 11, according to Google Finance.
Since revealing its Bitcoin investment strategy on April 9, 2024, Metaplanet has witnessed a nearly fivefold increase in its stock value. The company made its first Bitcoin purchase on April 23, acquiring 97.85 Bitcoin, and followed up with an additional 19.87 Bitcoin on May 10, as per Bitcoin Treasuries data. Currently, Metaplanet stands as the 30th-largest corporate holder of Bitcoin globally.
In a move reminiscent of MicroStrategy, the largest corporate holder of Bitcoin, Metaplanet announced on May 13 its intention to utilize a variety of capital market instruments to bolster its Bitcoin reserves. This strategic decision was made to hedge against Japan’s escalating debt burden and the rapid depreciation of the Japanese yen. Metaplanet highlighted Japan’s debt-to-GDP ratio of 261%, the highest among developed nations, as a concerning factor.
The yen has experienced a significant decline of nearly 35% against the US dollar since January 2021, while Bitcoin has seen a remarkable 200% increase against the yen in the past year.
Despite its impressive Bitcoin holdings, Metaplanet falls short of MicroStrategy’s massive stash of 214,400 Bitcoin, accounting for 1.02% of the total Bitcoin supply. Currently, Metaplanet is exclusively listed on the Tokyo Stock Exchange, limiting access for US investors. However, efforts are underway to broaden its accessibility.
In a related development, cryptocurrency experts foresee a potential fourfold increase in Stacks by 2025 if Bitcoin doubles in value, as predicted by Daan Crypto Trades and X Hall of Flame.