Japanese investment firm Metaplanet has made its largest Bitcoin purchase to date, acquiring almost 620 BTC as the cryptocurrency trades below $100,000. The Tokyo-based firm, known for its growing Bitcoin holdings, bought 619.7 Bitcoin on December 23 for just under $60 million, with Bitcoin priced at approximately $96,000 at the time.
This recent acquisition marks a significant leap for Metaplanet, nearly quadrupling the value of its previous largest purchase. On October 28, Metaplanet bought 159.7 BTC, but the latest purchase is by far its biggest yet. According to Bitbo data, this brings the company’s total Bitcoin holdings to 1,762 BTC, worth around $168 million. The average purchase price per Bitcoin stands at approximately $75,600.
Metaplanet’s Bitcoin Strategy
Metaplanet has been dubbed “Asia’s MicroStrategy” after the American Bitcoin-buying firm, reflecting its similar strategy of accumulating Bitcoin as part of its corporate treasury. As a result of its aggressive Bitcoin strategy, Metaplanet’s Bitcoin stack is now the 12th-largest among public companies, trailing behind medical technology company Semler Scientific.
From October 1 to December 23, Metaplanet reported an impressive Bitcoin yield of 310%. This is a significant improvement from the 41.7% yield the company reported for the previous quarter, from July to September. According to Metaplanet, the Bitcoin yield is used to assess the effectiveness of its Bitcoin acquisition strategy, which it views as beneficial to shareholders.
Metaplanet also disclosed that it is not just focused on acquiring Bitcoin but is looking to expand its operations beyond simply holding the cryptocurrency. On December 18, the firm projected that it would turn its first operating profit since 2017, signaling positive growth. As part of its strategy, Metaplanet announced plans to establish “Bitcoin accumulation and management” as a formal business line. This new business division would include financial products such as loans, equity, convertible bonds, and other instruments designed to help the company buy and hold Bitcoin.
Metaplanet’s stock price saw a 5% jump on the Tokyo Stock Exchange following the announcement of the Bitcoin purchase. Despite this, the firm’s stock is down almost 13% over the past week, according to Google Finance. However, it is important to note that Metaplanet’s stock has surged an extraordinary 2,100% this year, primarily driven by its Bitcoin adoption.
On December 17, Metaplanet’s stock hit an all-time high of 4,080 Japanese yen ($26), reflecting the market’s enthusiasm for the firm’s aggressive Bitcoin strategy. Earlier this year, the company had announced plans to raise over $62 million (9.5 billion Japanese yen) through a stock acquisition program, with the goal of purchasing more Bitcoin for its treasury.
In its drive to become a more prominent player in the Bitcoin and digital asset space, Metaplanet is focusing not only on accumulating Bitcoin but also on diversifying its strategy through the formal establishment of a Bitcoin-related business line. By integrating financial instruments like loans, equity, and bonds, Metaplanet is setting itself up to play a central role in the emerging Bitcoin financial ecosystem. This strategy aligns with global trends where firms are increasingly looking at cryptocurrencies as viable treasury assets, even developing new financial products around them.
Author’s Opinion
Metaplanet’s aggressive Bitcoin acquisition strategy exemplifies a forward-thinking approach to corporate treasury management. By focusing on Bitcoin, the firm is positioning itself as a leader in digital asset adoption, not only within Japan but also on a global scale. As other companies and governments begin to recognize Bitcoin’s role in the future of finance, Metaplanet’s investments in Bitcoin could pay off exponentially. Its recent purchase could be seen as a smart move, given the volatility and long-term growth potential of Bitcoin.
