Metaplanet acquires 620 BTC for $60.6 million, boosting its total holdings to 1,762 BTC.
The company issued zero-interest bonds to fund its latest purchase.
Japanese investment firm Metaplanet has made headlines with its largest Bitcoin purchase to date. The Tokyo-listed company acquired 619.7 BTC for ¥9.5 billion ($60.6 million), bringing its total holdings to 1,761.98 BTC. This latest purchase comes amid a dip in Bitcoin prices, with Metaplanet paying an average price of approximately $97,786 per coin.
*Metaplanet purchases additional 619.70 BTC* pic.twitter.com/5npflMJ3kW
— Metaplanet Inc. (@Metaplanet_JP) December 23, 2024
The company announced the acquisition on December 23, following a significant bond issuance. Metaplanet raised ¥9.5 billion through two zero-interest bonds to accelerate its Bitcoin strategy. The bonds, issued earlier in the week, are set to mature in June 2025. The company aims to use the funds to expedite Bitcoin purchases planned for 2025 into the current fiscal year.
Dubbed “Asia’s MicroStrategy,” Metaplanet has adopted BTC as a key treasury reserve asset since May. The firm’s holdings are now valued at $167.1 million, with an average purchase price of $75,600 per Bitcoin. This recent acquisition marks a significant milestone, nearly quadrupling its previous record purchase of 159.7 BTC in October.
Bitcoin Strategy Fuels Growth
Metaplanet’s aggressive Bitcoin strategy is paying off for shareholders. The company reported a 310% Bitcoin yield between October and December, a sharp increase from the 41.7% yield in the previous quarter. The firm now plans to expand its BTC operations into a dedicated business line, incorporating loans, equity, and other financial instruments.
The latest acquisition also aligns with the company’s improving financial outlook. Metaplanet anticipates its first operating profit in seven years, projecting revenue of ¥890 million ($5.8 million) for the fiscal year ending December 31. This marks a significant turnaround from the ¥261 million recorded last year. The company expects an operating profit of ¥270 million, a sharp recovery from last year’s ¥468 million loss.
A substantial portion of the firm’s revenue comes from Bitcoin-related activities. Selling BTC put options generated ¥520 million in income, making it a key driver of its financial success. Put options allow Metaplanet to sell Bitcoin at a pre-agreed strike price, earning premiums for each contract sold.
Despite its Bitcoin success, Metaplanet’s stock fell 0.98% to ¥3,540 on Monday, after rising 1,982% year-to-date. While U.S. based MicroStrategy remains the largest corporate Bitcoin holder, Metaplanet continues to solidify its position as a significant player in the cryptocurrency market.
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