Metaplanet, a publicly-traded investment and consulting firm in Japan, is expanding its Bitcoin investment despite a decline in BTC prices by injecting additional funds into purchasing the cryptocurrency.
On July 7, Metaplanet officially announced its latest Bitcoin acquisition, purchasing 42,466 bitcoins for 400 million Japanese yen ($2.5 million).
Following the completion of this purchase, Metaplanet now holds a total of 203,734 BTC, which were bought at an average price of approximately 10 million yen ($62,000) per coin. The average purchase price is roughly 7% higher than the current BTC price.
Metaplanet made a groundbreaking entry into the world of Bitcoin in April 2024 when it adopted Bitcoin as a treasury asset and made its initial Bitcoin purchase worth $6.5 million.
In the April 8 announcement, Metaplanet revealed that its decision to venture into Bitcoin was supported by notable industry figures such as Mark Yusko, the founder of Morgan Creek Capital, Jack Liu, a founding member of Ordiswap, and companies like Sora Ventures and UTXO Management.
Metaplanet has earned the nickname “Asia’s MicroStrategy” due to its aggressive approach to buying Bitcoin, reminiscent of MicroStrategy’s foray into Bitcoin in 2020. MicroStrategy began purchasing Bitcoin in 2020 as a hedge against inflation and an alternative to holding cash. As of June 24, the company had amassed a total of 226,331 Bitcoin, costing them $7.538 billion, or $35,158 per BTC.
Metaplanet’s move into Bitcoin has had a significant impact on the company’s market momentum. The announcement of their Bitcoin investment caused their stock price to surge by approximately 90%. However, the company’s shares experienced a decline due to the substantial drop in the Bitcoin price.
Since reaching its peak at 107 yen ($0.66) on June 11, Metaplanet’s stock has fallen by 25% as Bitcoin dropped from around $70,000 to below $60,000.
According to TradingView data, the company’s stock is currently trading at 80 yen ($0.5), which is still 344% higher than its value at the beginning of 2024.
In late June, Metaplanet unveiled a plan to issue 1 billion yen ($6.26 million) worth of bonds to raise funds for Bitcoin purchases. This strategy mirrors the actions of Michael Saylor’s MicroStrategy, which has repeatedly announced convertible note raises in 2024 to invest more in Bitcoin.