Metaplanet Completes ¥1 Billion Bitcoin Acquisition, Earmarks $58.76 Million for Further BTC Purchases

Key points: Metaplanet, a Tokyo-listed company, has increased its Bitcoin holdings with a recent purchase of 57.273 BTC for ¥500 million (approximately

Tokyo-listed Metaplanet (3350) has increased its Bitcoin (BTC) holdings following a recent purchase of 57.273 BTC for ¥500 million (approx. $3.4 million). This latest acquisition brings the firm's total Bitcoin holdings to 360.368 BTC, valued at ¥3.45 billion or over $23 million.

The latest purchase completes Metaplanet's previously announced plan to acquire ¥1 billion worth of Bitcoin through a loan from MMXX Ventures Limited. This move is part of the company's strategy to adopt Bitcoin as a key treasury reserve asset.

According to an announcement on August 20, the company now holds an additional 500 million yen worth of Bitcoins. This completes the company's purchase of 1 billion yen in total bitcoins.

“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 additional 500 million yen worth of Bitcoins. With this purchase, we have completed the purchase of 1 billion yen worth of Bitcoins,” Metaplanet stated.

Metaplanet's aggressive Bitcoin acquisition strategy appears to be influenced by economic challenges in Japan, including a weakening yen. The company is also exploring potential future business ventures within the Bitcoin ecosystem and considering generating additional income from its Bitcoin holdings by selling covered calls on the digital assets.

.@Metaplanet_JP has purchased an additional ~57.273 #bitcoin for ¥500 million at an average price of ¥8,730,117 per $BTC. As of August 20, Metaplanet holds ~360.368 bitcoin acquired for ¥3.45 billion at an average price of ¥9,573,556 per $BTC. #メタプラネット pic.twitter.com/eIJG33xZBK

— Simon Gerovich (@gerovich) August 20, 2024

The firm has announced plans to raise an additional $70 million for further acquisitions, out of which $58.76 million is specifically earmarked for more Bitcoin purchases. This approach mirrors the strategy of MicroStrategy (Nasdaq: MSTR), the largest Bitcoin holder globally, which now owns over 220,000 BTC valued at more than $13 billion.

Metaplanet's pivot to Bitcoin has also positively impacted its stock performance. According to Google Finance data, the company's stock price has seen a 643% year-to-date increase since adopting its Bitcoin strategy. Following the announcement of the latest Bitcoin purchase, Metaplanet's stock surged by 14%, reaching ¥1,193 ($8.11) per share.

Originally involved in hotel development and operations, Metaplanet has diversified its business to include consulting services for Bitcoin adoption, real estate development, and investments. The company is listed on the Tokyo Stock Exchange under the ticker 3350.

At the Bitcoin Conference in Nashville last month, Gerovich revealed that Metaplant was beginning to exhibit traits associated with zombie companies before shifting its strategy to Bitcoin. The CEO stated that the company eventually “realized that Bitcoin is the apex monetary asset” and would make a “great” element of Metaplanet's treasury.

As of August 20, 2024, Metaplanet has completed its planned ¥1 billion Bitcoin acquisition, showcasing its commitment to its new strategy centered on Bitcoin as a principal treasury reserve asset.

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