As a researcher with a background in finance and experience in following the cryptocurrency market, I find Metaplanet’s recent purchase of 23.351 BTC worth about $1.59 million to be an intriguing development. The Tokyo-based company’s decision to increase its bitcoin holdings to 141.07 BTC, worth $9.6 million, is a bold move that has paid off handsomely for the corporation.
On June 11, Metaplanet, a Japanese firm, disclosed the acquisition of approximately 23.351 Bitcoins for around $1.59 million, thereby increasing its total Bitcoin holdings to approximately 141.07 Bitcoins, valued at nearly $9.6 million.
The decision made by Metaplanet in favor of bitcoin caused a significant increase of 10.8% in the value of their publicly traded shares.
Metaplanet Buys 23.351 BTC
Tokyo-based firm, colloquially known as Asia’s MicroStrategy, disclosed that after their recent Bitcoin acquisitions, they paid an average cost of approximately 10.27 million Yen per coin, which is equal to around $65,365.
More recently, we added to our holdings with two purchases worth approximately 97.85 and 19.87 BTC on the 23rd of April and 10th of May. Despite having a minuscule amount of Bitcoin compared to industry giants like MicroStrategy, Metaplanet has entered the top 30 ranks among corporations holding this digital asset.
After the recent revelation of Metaplanet’s new Bitcoin purchase, there has been a significant surge in its stock value, approximately 10%. Additionally, since Metaplanet disclosed its Bitcoin investment strategy on April 9, there has been an impressive increase of around 368% in its stock price. This remarkable rise, from a low of 19 Yen to the current 89 Yen, is a clear indication of investors’ positive response towards this crypto venture.
Metaplanet emphasized several reasons for their Bitcoin strategy when they made the announcement. One reason being, Bitcoin serves as an effective hedge against Japan’s rapidly growing international debt. With a debt-to-GDP ratio of 261% in early 2024, Japan held the highest debt level among all developed nations.
As a crypto investor, I’ve noticed an intriguing opportunity with Bitcoin (BTC) as a hedge against the Japanese Yen’s rapid depreciation. Over the past year, the Yen has weakened significantly, losing approximately 35% of its value against the US Dollar since January 2021. In contrast, Bitcoin has experienced remarkable growth against the Yen, with over 200% appreciation during this same period.
Corporates Reap Rewards as Bitcoin Surges
With Bitcoin currently hovering around $67,000 as the leading cryptocurrency, Metaplanet’s bitcoin holdings boast an impressive unrealized gain of approximately 2.5%. Notably, this profit was earned even though Bitcoin is trading a few thousand dollars below its record high of $73,000.
Metaplanet has pledged to carry on growing its Bitcoin holding. Similar to MicroStrategy, Metaplanet announced on May 13 its intention to employ various financial instruments from the capital markets in order to enhance its Bitcoin reserves.
Similar to Metaplanet, corporations such as MicroStrategy are experiencing substantial gains, according to Saylor Tracker’s latest figures. The company founded by Saylor boasts an impressive unrealized profit of approximately $6.5 billion from their Bitcoin investments.
As an analyst, I’ve observed that the trend of companies investing in Bitcoin is not limited to Metaplanet and MicroStrategy. In fact, just yesterday, DeFi Technologies, based in Canada, announced the addition of 110 BTC to its treasury. This news resulted in a significant surge of approximately 11% in their stock prices.
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2024-06-12 09:48