Metaplanet has made another strategic move by purchasing 21.88 Bitcoin, worth over $1.2 million. This acquisition occurred during a significant rise in Bitcoin’s price, pushing it close to $65,000. As a result, Metaplanet’s total Bitcoin holdings have now reached 225.6 BTC, valued at approximately $14.6 million.
Stock Surge: What Happened?
Following the announcement on July 16, Metaplanet’s share price surged dramatically on the Tokyo Stock Exchange, experiencing a 22% increase within the first 30 minutes. Data from Google Finance shows that this surge continued, leading to a 25.8% rise and bringing the stock price to $0.74 in the first two and a half hours of trading.
Why Is Metaplanet Buying More BTC?
This latest purchase by Metaplanet follows a similar move earlier in the month. On July 7, the company capitalized on a dip in Bitcoin prices to buy 42.46 BTC for $2.5 million. Since announcing its Bitcoin investment strategy on April 9, 2024, Metaplanet’s stock price has nearly sextupled, indicating market approval of its aggressive Bitcoin accumulation strategy.
Concrete Inferences: Metaplanet’s Strategy
- Metaplanet’s aggressive Bitcoin accumulation suggests a long-term bullish outlook on cryptocurrency.
- The company’s stock price surge indicates strong market support for its Bitcoin-centric strategy.
- Metaplanet’s approach might serve as a hedge against the devaluation of traditional fiat currencies like the Japanese yen.
Despite impressive growth, Metaplanet’s Bitcoin assets have only gained 2.8% in value, considering an average purchase price of $62,890 per Bitcoin. However, the company’s strategic investments demonstrate a long-term confidence in the potential of the cryptocurrency. According to CoinGecko, Metaplanet is currently the 21st largest institutional Bitcoin holder globally.
Metaplanet’s strategy is often compared to MicroStrategy, led by Michael Saylor, the largest institutional Bitcoin holder. Similar to MicroStrategy’s 2020 strategy, Metaplanet announced on May 13 plans to use various capital market instruments to increase its Bitcoin reserves further. This approach aims to hedge against Japan’s growing debt burden and the rapid devaluation of the Japanese yen.
The Japanese yen has significantly depreciated, dropping by approximately 54% against the US dollar since January 2021. In contrast, Bitcoin has surged over 145% against the yen in the past 12 months, showcasing its potential as a hedge against fiat currency devaluation. Currently, Bitcoin is trading at $64,640, reflecting a 13.6% increase over the past week and indicating ongoing bullish sentiment in the market.