Metaplanet Increases Bitcoin Holdings to 400 BTC with ¥300 Million Investment

TLDR:

• Metaplanet purchased ¥300 million worth of Bitcoin, increasing holdings to ~400 BTC
• The company used funds from exercised stock options for the Bitcoin purchase
• Metaplanet partnered with SBI VC Trade for Bitcoin trading and custody services
• The firm views Bitcoin as a hedge against yen depreciation and high government debt
• Institutional demand for Bitcoin has increased amid recent market sentiment

Metaplanet, a Japanese publicly traded company, has significantly increased its Bitcoin holdings with a recent purchase of ¥300 million worth of the cryptocurrency.

This acquisition brings the firm’s total Bitcoin holdings to approximately 400 BTC, valued at around $22.5 million.

The company, often referred to as “Asia’s MicroStrategy” due to its Bitcoin-focused investment strategy, announced the purchase on Tuesday.

This move follows a Monday statement that the management team would exercise the 11th series of stock acquisition rights, allowing executives to purchase company stock at a predetermined price.

Metaplanet had previously stated that the funds raised from this exercise, totaling ¥229.7 million, would be used to invest in Bitcoin. The management team expressed their belief in Bitcoin’s continued value as an asset.

In an official announcement on social media platform X, Metaplanet confirmed the purchase of an additional 38.46 BTC at an average price of 7.79 million yen per BTC. This latest acquisition is part of a series of Bitcoin purchases made by the company in recent months.

*Metaplanet purchases additional 38.46 $BTC* pic.twitter.com/vdnRt8O07c

— Metaplanet Inc. (@Metaplanet_JP) September 10, 2024

The firm’s investment strategy mirrors that of MicroStrategy, a U.S.-based company known for its substantial Bitcoin holdings. Metaplanet views Bitcoin as a strategic hedge against the depreciation of the Japanese yen and the country’s high government debt.

Earlier this month, Metaplanet formed a partnership with SBI VC Trade, the crypto investment arm of SBI Group. This collaboration aims to enhance Metaplanet’s Bitcoin trading and custody services. The partnership focuses on providing access to compliant corporate custody services, improving tax efficiency, and exploring the use of Bitcoin as collateral for financing.

SBI VC Trade will assist Metaplanet with trading, storage, and operational support. The partnership also allows Metaplanet to benefit from SBI’s tax exemption service, which supports long-term corporate crypto holdings.

The company’s consistent Bitcoin accumulations have generated headlines in the crypto industry. In June, Metaplanet acquired $7 million worth of Bitcoin through bond sales, further demonstrating its commitment to increasing its cryptocurrency holdings.

Metaplanet’s investment strategy aligns with a broader trend of institutional interest in Bitcoin. The approval of spot Bitcoin ETFs in the United States by the Securities and Exchange Commission (SEC) earlier this year led to increased exposure to the asset by traditional institutions.

The crypto market has also seen other developments indicating growing institutional adoption. The Proof of Workforce Foundation (POWF) and Careers in Government Inc. recently partnered to introduce Bitcoin to public sector employment, with a focus on integrating the asset into welfare packages.

As of the latest reports, Bitcoin’s price trades around $57,000. The cryptocurrency market continues to be influenced by various factors, including institutional demand and macroeconomic conditions.