Metaplanet Doubles Down on Bitcoin, Purchases Another ¥1 billion BTC

Metaplanet, the Tokyo-listed investment firm recognized for its Bitcoin adoption, has added 108.999 Bitcoin, valued at ¥1 billion, to its holdings, the company announced Friday (Asian time).

The company’s Bitcoin bet hits $45 million following its new Bitcoin purchase. Along with some other majors, Metaplanet is stacking some serious BTC.

The latest purchase boosts Metaplanet’s Bitcoin stash to 748.502, worth around $45 million based on current prices. The average price for all Bitcoin owned by Metaplanet is ¥9,304,655 (around $62,500) per Bitcoin.

Stacking!

The acquisition came shortly after the company said it bought ¥1 billion worth of Bitcoin on Monday, amid a backdrop of rising geopolitical tensions which some experts believe bolster Bitcoin’s appeal as a global currency.

Metaplanet, often labeled as Asia’s MicroStrategy, has actively bought Bitcoin since it revealed its plan to adopt the cryptocurrency as a key part of its treasury reserve earlier this year. The company said it has followed MicroStrategy’s Bitcoin playbook, using Bitcoin as a hedge against the national currency’s volatility.

The Japanese economy has faced ongoing challenges since late 2021. By the first half of 2024, Japan’s yen depreciated against the dollar by about 50%.

The Japanese yen’s weakness is mainly due to the interest rate differential between Japan and the U.S. Japan’s ultra-loose monetary policy, intended to stimulate the economy, contrasts sharply with the Federal Reserve’s more hawkish stance.

The yen’s excessive depreciation was among the reasons that pushed Metaplanet to implement its Bitcoin strategy. At this point, plans appear to pay off as Metaplanet’s shares have skyrocketed over 400% following several BTC purchases.

Bitcoin has played a key role in helping Metaplanet escape its “zombie company” status. Prior to adopting a Bitcoin-centric strategy, the firm was described as a zombie company, struggling with financial viability and facing challenges due to Japan’s economic environment.
.
Metaplanet’s leadership views the potential of Bitcoin as a treasury reserve asset. CEO Simon Gerovich the company aimed to mitigate risks associated with currency depreciation and leverage Bitcoin’s long-term appreciation potential.

Metaplanet plans to continue expanding its Bitcoin reserves. The firm revealed its intentions to acquire an additional ¥7.5 billion (around $50.5 million) worth of Bitcoin by the end of 2024. The firm also announced plans to raise additional funds for more Bitcoin purchases through stock acquisition rights.

Unfazed by Bitcoin’s Price Fluctuations

Like MicroStrategy, Metaplanet has consistently invested in the cryptocurrency in recent months, despite the ongoing volatility in the Bitcoin market. Bitcoin dipped below $59,000 on Thursday after the US inflation data came hotter than expected.

At the time of writing, BTC resurged above $60,000, CoinGecko data shows. However, analysts warned that short-term pressure was still in sight as fears about stagflation resurfaced.

According to reports, core inflation rose to 3.3% year-over-year, slightly higher than estimates. Monthly inflation increased by 0.2%, with an annual rate of 2.4%. A separate report from the U.S. Department of Labor showed that initial jobless claims for the week ending Oct. 5 reached 258,000, the highest level since August 8 last year.

The inflation uptick and stagnating labor market may influence Federal Reserve rate cut decisions. The Fed recently made an aggressive rate reduction, lowering interest rates by 50 basis points. Analysts believe that in addition to inflation print, the Fed has added job growth to its checklist.

The Fed is expected to continue adjusting rates based on incoming economic data. Predictions suggest there may be additional cuts later in 2024, with odds leaning toward a 25-basis-point rate decrease. With lower rates come higher asset prices – BTC included.

Interest rates set by central banks can indirectly affect Bitcoin’s price. Lower interest rates may encourage investment in riskier assets like Bitcoin. It looks like it is all about HODL – and Metaplanet is getting in on the action.