Metaplanet Shares Surge After its Third Million-Dollar Bitcoin Purchase
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Metaplanet has experienced a double-digit surge in its shares following the disclosure of another million-dollar Bitcoin (BTC) purchase.
According to a statement released on June 11, Metaplanet acquired 23.25 Bitcoin (BTC), equivalent to nearly $1.59 million, marking the company’s third Bitcoin purchase within a span of seven weeks.
This brings their total Bitcoin holdings to 141.07 Bitcoin, valued at approximately $9.6 million.
The average purchasing price of BTC was $65,365 per coin or 10,278,391 Japanese yen.
Metaplanet Gains 4.5% on BTC Investment
With Bitcoin’s current price at $68,313, Metaplanet has gained 4.5% on its Bitcoin investment, as reported by CoinGecko.
Investors responded positively to this move, causing Metaplanet’s stock to rally by 10.8% to $0.59 or 92 Japanese yen.
However, the stock later settled at $0.57 or 89 Japanese yen on the Tokyo Stock Exchange by midday on June 11, according to Google Finance.
Since unveiling its Bitcoin investment strategy on April 9, 2024, Metaplanet’s stock has soared nearly fivefold.
The company’s initial Bitcoin purchase of 97.85 Bitcoin took place on April 23, followed by an additional 19.87 Bitcoin on May 10, as reported by Bitcoin Treasuries.
Metaplanet now stands as the 30th largest corporate holder of Bitcoin worldwide.
Similar to MicroStrategy, the largest corporate Bitcoin shareholder, Metaplanet announced on May 13 that it would adopt a range of capital market instruments to strengthen its Bitcoin reserves.
This strategy is intended to hedge against Japan’s escalating debt burden and the rapid depreciation of the Japanese yen.
Metaplanet highlighted Japan’s debt-to-GDP ratio of 261%, which is the highest among developed countries.
Over the past year, the Japanese yen has declined by approximately 35% against the US dollar, while Bitcoin has surged nearly 200% against the Japanese yen.
Despite its recent Bitcoin purchases, Metaplanet’s holdings still pale in comparison to those of MicroStrategy, which owns 214,400 Bitcoin, amounting to roughly 1.02% of the total Bitcoin supply.
Currently, Metaplanet is exclusively available on the Tokyo Stock Exchange, limiting access to US investors.
Back in April, Metaplanet revealed its decision to incorporate Bitcoin into its treasury assets due to several factors.
Firstly, it aims to minimize its exposure to the Japanese yen, which has been significantly impacted by Japan’s low-interest-rate environment.
In a shareholder update, Metaplanet expressed concern about the yen’s vulnerability and highlighted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation.
Corporate Bitcoin Holders Start to Reap Rewards
A number of major corporate investors in Bitcoin, including Microstrategy, have already seen their profits skyrocket.
As per data aggregated by Saylortracker, at current market prices of around $67,000, MicroStrategy’s position now commands a total valuation exceeding $14.59 billion.
This means the company sits on tremendous unrealized profits of almost $6.5 billion on paper – reflecting a gain of almost 104% yield-to-date from an investment allocation started under Saylor back in 2020.
As of now, Bitcoin is trading at around $67,900, down by more than 2% over the past day.
The leading cryptocurrency is 8% away from its all-time high of $73,750 registered on March 14.
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