Metaplanet Makes Largest BTC Purchase to Date Despite Bitcoin Price Correction

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As a seasoned investor with a keen eye for trends and a knack for spotting undervalued assets, I find Metaplanet’s latest Bitcoin acquisition intriguing. Despite the recent market downturn, their confidence in Bitcoin’s long-term potential is commendable.

Reflecting on the recent 9.8% dip in Bitcoin’s value over the past week, I can sense a note of cautiousness among investors, with many expressing concerns about potential further declines. However, it’s interesting to note that despite this apprehension, Japan-based Metaplanet has demonstrated unwavering confidence by purchasing approximately 620 Bitcoin, reaffirming their faith in the digital currency.

Interestingly, the latest acquisition marks its largest Bitcoin purchase to date.

Metaplanet’s Largest Single BTC Acquisition

As per the company’s official statement, their recent purchase of 619.7 Bitcoins, worth approximately $60.6 million, was made under its Bitcoin Treasury Operations. With this transaction, Metaplanet now owns a total of 1,761.98 Bitcoins, which are valued at nearly $168 million.

For the past six months, Metaplanet has used various financial strategies such as stock offerings and issuing zero-interest bonds to finance their acquisition of Bitcoins.

More recently, the company managed to secure ¥5 billion (approximately $31.9 million) through its fifth issue of Ordinary Bonds on December 20, 2024. Earlier, this Tokyo-based investment firm had also disclosed plans for a separate bond issuance worth ¥4.5 billion ($28.7 million), which is scheduled to be paid back by June 16, 2025.

In a remarkable surge, Metaplanet’s Bitcoin returns skyrocketed by approximately 310% from October 1st to December 23rd, 2024. This significant growth underscores Metaplanet’s strong presence in corporate Bitcoin investments, despite the overall market remaining pessimistic.

Boost From Bitcoin

Metaplanet, sometimes called “Asia’s counterpart to MicroStrategy,” started amassing Bitcoin in May, following a similar approach as the US-based Bitcoin-centric company. Lately, it disclosed that it anticipates its initial profit in seven years, attributable to its decision in April to designate Bitcoin as a reserve asset.

In the year 2024’s financial period, estimates indicate a revenue boost to approximately $5.8 million, up from ¥261 million, and anticipate an operating profit of ¥270 million. This represents a notable reversal following years of accumulated losses. A major factor contributing to this change is the company’s strategic application of Bitcoin put options, which generated ¥520 million. Additionally, the firm experienced robust earnings at its Tokyo-based Royal Oak Hotel.

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2024-12-24 01:36