TLDR:
Metaplanet made its largest Bitcoin purchase of 619.7 BTC worth $60 million, bringing total holdings to 1,762 BTC valued at $168 million
The Japanese firm’s BTC Yield surged to 310% in Q4 2023, up from 41.7% in Q3
Company stock has risen over 2,100% in 2023, reaching an all-time high of 4,080 JPY on December 17
Metaplanet is rebranding as a Bitcoin Treasury company and raised $62 million through bonds for Bitcoin purchases
The average purchase price across all Bitcoin holdings is $75,600 per BTC
Japanese investment firm Metaplanet has purchased 619.7 Bitcoin worth approximately $60 million, marking its largest cryptocurrency acquisition since beginning its Bitcoin strategy in May 2023. The purchase was made on December 23, 2024, with Bitcoin trading around $96,000.
The Tokyo-based company has earned the nickname “Asia’s MicroStrategy” due to its steady accumulation of Bitcoin, similar to the American firm known for its large cryptocurrency holdings. This latest purchase brings Metaplanet’s total Bitcoin holdings to 1,762 BTC, valued at roughly $168 million.
The company’s average purchase price across all Bitcoin acquisitions stands at $75,600 per BTC, positioning the firm for substantial gains given current market prices. Metaplanet’s Bitcoin stack now ranks as the 12th-largest among public companies, placing it behind medical technology manufacturer Semler Scientific.
*Metaplanet purchases additional 619.70 BTC* pic.twitter.com/5npflMJ3kW
— Metaplanet Inc. (@Metaplanet_JP) December 23, 2024
Metaplanet reported a notable increase in its BTC Yield, reaching 310% for the period from October 1 to December 23. This marks a substantial improvement from the previous quarter’s yield of 41.7% between July and September.
The company uses BTC Yield as a metric to evaluate the effectiveness of its Bitcoin acquisition strategy. This measurement helps determine whether the approach creates value for shareholders, according to company statements.
The investment firm’s commitment to Bitcoin extends beyond simple treasury management. In an investor disclosure, Metaplanet announced plans to establish “Bitcoin accumulation and management” as a formal business line, incorporating various financial instruments such as loans, equity, and convertible bonds.
To fund its Bitcoin purchases, Metaplanet recently raised over $62 million (9.5 billion Japanese yen) through a stock acquisition program. The company used the entire amount from two bond issues to acquire Bitcoin, demonstrating its dedication to its cryptocurrency strategy.
CEO Simon Gerovich explained the company’s motivation, stating,
“This way we protect our capital from the declining yen and we are positioned for the future.”
The strategy appears to be resonating with investors, as Metaplanet’s stock price has experienced remarkable growth.
The company’s shares have risen more than 2,100% in 2023, reaching an all-time high of 4,080 Japanese yen ($26) on December 17. However, following the latest Bitcoin purchase announcement, the stock showed mixed performance, rising 5% initially but remaining down about 13% over the past week.
Metaplanet projects its first operating profit since 2017, marking a turning point in the company’s financial performance. This improvement coincides with its adoption of a Bitcoin-focused strategy.
The broader cryptocurrency market context shows Bitcoin trading at $95,500, with a market capitalization below $1.9 trillion. Daily trading volumes have decreased by 4.18%, falling under $50 billion, while long liquidations reached $40 million in the last 24 hours.
Market data indicates that Bitcoin recently achieved an all-time high of $108,000, contributing to Metaplanet’s strong quarterly returns. The cryptocurrency’s price movement has influenced the company’s investment timing and strategy.
Metaplanet’s approach mirrors a growing trend of corporate Bitcoin adoption. For comparison, El Salvador recently added 29 BTC to its holdings, bringing its total to 5,995 BTC, valued at $562 million.
The company’s stock currently trades at 3,410 JPY, having corrected from its recent peak of 4,250 JPY, reflecting broader market movements and investor sentiment.
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