Metaplanet Completes ¥1 Billion Bitcoin Acquisition, Stock Surges 14%

TLDR

• Metaplanet, a Japanese public company, completed a ¥1 billion ($6.8 million) Bitcoin acquisition.
• The company purchased 57.273 BTC worth ¥500 million ($3.4 million) on August 20, bringing its total holdings to 360.368 BTC.
• Metaplanet’s stock price surged 14% following the announcement of the Bitcoin purchase.
• The company is using a ¥1 billion loan from MMXX Ventures at 0.1% APR to finance its Bitcoin acquisitions.
• Metaplanet’s stock has grown over 645% year-to-date amid its aggressive Bitcoin buying strategy.

Metaplanet, a Japanese public company listed on the Tokyo Stock Exchange, has seen its stock price surge following the completion of a significant Bitcoin acquisition.

The firm, which has adopted Bitcoin as its primary treasury reserve asset, announced on August 20 that it had purchased an additional 57.273 BTC worth ¥500 million (approximately $3.4 million).

This latest purchase is part of a larger ¥1 billion ($6.8 million) Bitcoin acquisition strategy, financed through a loan from MMXX Ventures at a remarkably low interest rate of 0.1% APR. The company had previously acquired a similar amount of Bitcoin last week, completing its planned ¥1 billion investment.

.@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

Following the announcement, Metaplanet’s stock price jumped by 14%, continuing its impressive growth trajectory.

The company’s shares, traded under the ticker 3350 on the Tokyo Stock Exchange, have seen a staggering increase of over 645% year-to-date, largely attributed to its aggressive Bitcoin buying strategy.

Simon Gerovich, CEO of Metaplanet, shared in a statement that the firm’s total Bitcoin holdings have now reached 360.368 BTC. These holdings were acquired for a total of 3.45 billion Japanese yen, at an average price of 9,573,556 yen per BTC (approximately $65,000 at current exchange rates).

Metaplanet’s pivot to Bitcoin as a treasury reserve asset comes in response to Japan’s economic challenges, including high government debt and prolonged negative real interest rates.

The company, originally involved in hotel development and operations, has diversified its business to include consulting services in Bitcoin adoption, real estate development, and investments.

The strategy appears to be paying off handsomely. At the Bitcoin Conference in Nashville last month, Gerovich revealed that Metaplanet 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.

Metaplanet’s approach to Bitcoin investment is reminiscent of MicroStrategy, the American company known for its substantial Bitcoin holdings. This similarity has earned Metaplanet the moniker “Japan’s MicroStrategy” in some circles.

The company’s Bitcoin acquisition strategy takes advantage of Japan’s low interest rate environment. By borrowing Yen at cheap rates and purchasing Bitcoin, Metaplanet is effectively implementing a version of the Japanese Yen carry trade, a practice where investors borrow low-yielding Yen to invest in higher-yielding assets globally.

As of the latest report, Metaplanet’s stock was trading at 1,193 yen, up more than 10% on the day of the announcement. The stock hit an intraday high of 1,295 JPY, reflecting strong investor enthusiasm for the company’s Bitcoin-focused strategy.

The impact of Metaplanet’s announcement was also felt in the broader cryptocurrency market. Bitcoin’s price jumped more than 4% in the 24 hours following the news, trading at $61,065. The 24-hour trading volume for Bitcoin also saw a 40% increase, indicating heightened interest among traders.

Metaplanet’s success story highlights the growing trend of corporations adopting Bitcoin as a treasury reserve asset. As more companies explore this strategy, particularly in environments of low or negative interest rates, it could have significant implications for both the corporate world and the cryptocurrency market.