Metaplanet Inc, a prominent Japanese investment firm, has once again displayed its optimistic view on Bitcoin [BTC] by investing approximately $61 million in the leading cryptocurrency.
Metaplanet’s Firm Bitcoin Strategy
Announced on the 23rd of December, the company disclosed that it had purchased an additional 619.7 BTC at an average cost of 15.3 million yen ($97,786) per Bitcoin. This acquisition boosts their total Bitcoin holdings to 1,761.98 BTC, with a current value exceeding $164 million.
This calculated move, estimated at around $167.1 million, showcases Metaplanet’s strong belief in the potential of Bitcoin as a pivotal asset in its investment portfolio.
It’s worth noting that the recent purchase by the Tokyo-based company was financed through a recent 9.5 billion yen ($60.6 million) bond offering.
Correlating Events…
At the same time as Metaplanet’s buy-in, Bitcoin was seeing a significant drop in value, slipping below the $100,000 mark to $94,026.54. This marked a 12.06% decrease in a week, according to CoinMarketCap.
This indicates that Metaplanet has embraced the strategy of taking advantage of market dips and reinforces its optimistic long-term perspective on Bitcoin, despite short-term fluctuations.
As a point of reference, Metaplanet has consistently increased its BTC holdings since integrating the cryptocurrency into its strategic reserve assets in May.
Just last week, the company reaffirmed its dedication by outlining plans to ramp up Bitcoin acquisitions through debt issuance.
Is Metaplanet Drawing Inspiration from MicroStrategy?
Interestingly, Metaplanet’s investment strategy mirrors the one pioneered by American software giant MicroStrategy, which began investing in Bitcoin in 2020 to enhance shareholder value.
With holdings of 444,262 BTC valued at over $41 billion, MicroStrategy has established a model that Metaplanet seems keen to follow.
MicroStrategy has effectively utilized its Bitcoin holdings by securitizing the asset, allowing investors to indirectly participate through its shares listed on Nasdaq.
Effect on Stock Performance
Similarly, Metaplanet has been actively acquiring BTC. However, the company’s stock price has recently experienced fluctuations.
On the 23rd of December, Metaplanet’s shares decreased by 0.98%, closing at 3,540 yen ($22.52). Subsequently, according to the latest data from Google Finance, the stock dropped even further, closing at 3,220 yen on the 24th of December—a 9.04% decline in just one day.
Despite this, its year-to-date growth remained impressive at 1,982%, as per Yahoo Finance. Nonetheless, the recent declines signal increased market volatility even with the firm’s unwavering commitment to Bitcoin.