Metaplanet Jumps 10% After Bitcoin Purchase
YEREVAN (CoinChapter.com) — Shares in Metaplanet jumped on Tuesday after the company disclosed another million-dollar Bitcoin (BTC) purchase, marking its third acquisition in seven weeks.
On June 11, Metaplanet announced it had bought 23.25 Bitcoin, valued at almost $1.59 million. This purchase increased its total Bitcoin holdings to 141.07 BTC, worth over $9.6 million. The average purchase price was $65,365 per Bitcoin, or 10,278,391 Japanese yen.
Statement reflecting Metaplanet’s latest Bitcoin holdings. Source: Metaplanet Stock Market Reaction to Metaplanet’s Strategy
The latest Bitcoin purchase had an immediate impact on the stock market. Metaplanet’s stock jumped by 10.8%, reaching $0.59 (92 Japanese yen) before settling at $0.57 (89 Japanese yen) by midday on the Tokyo Stock Exchange.
Metaplanet’s change in stock price on June 11. Source: Google Finance
Since unveiling its Bitcoin investment strategy on April 9, 2024, Metaplanet’s stock has soared nearly fivefold. The firm’s first purchase was on April 23, acquiring 97.85 BTC. This was followed by another purchase of 19.87 BTC on May 10.
Metaplanet Now the 30th Largest Corporate Bitcoin Holder
With the latest acquisition, the firm has now become the 30th largest corporate holder of Bitcoin worldwide. The company’s strategy mirrors that of MicroStrategy, the largest corporate Bitcoin shareholder, which holds 214,400 Bitcoin, amounting to 1.02% of the total Bitcoin supply.
On May 13, Metaplanet reiterated its commitment to using a broad range of capital market instruments to bolster its Bitcoin reserves. The firm sees Bitcoin as a hedge against Japan’s worsening debt situation and the rapidly depreciating Japanese yen.
Japan’s Debt Pushes Metaplanet to Bitcoin
Japan’s debt-to-GDP ratio stands at 261%, the highest among developed nations. Since January 2021, the Japanese yen has fallen almost 35% against the U.S. dollar. In contrast, Bitcoin has surged nearly 200% against the yen over the past 12 months.
Still, Metaplanet’s Bitcoin holdings are far below those of Michael Saylor’s firm, which owns 214,400 Bitcoin, about 1.02% of the total 21 million Bitcoin that will ever exist.
Above all, investors have reacted favorably to Metaplanet’s Bitcoin purchases. The latest acquisition has increased the company’s Bitcoin holdings and raised its stock price. The company is currently listed only on the Tokyo Stock Exchange, but there are plans to make its stock available to U.S. investors.
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