- Metaplanet’s Bitcoin holdings rise to 203.734 BTC, valued at 2.05 billion yen, showing aggressive accumulation.
- Metaplanet’s stock surges 2.5% post-BTC purchase, up 382% in 2024, fueled by its Bitcoin adoption strategy.
- Metaplanet’s BTC investments grow as a hedge against Japan’s economic challenges, reflecting a global trend among companies.
Japan’s public-listed firms are increasingly adding Bitcoins to their reserves, with Metaplanet leading the charge. Metaplanet recently purchased 42.47 Bitcoins worth 400 million yen (2.42 million USD) as Bitcoin prices dipped below $54,500.
Metaplanet’s Aggressive Bitcoin Strategy
On the accumulation strategy side, the Japanese firm has been very aggressive in the deployment of Bitcoin. Thus, Metaplanet is referred to as the ‘MicroStrategy of Japan.’ The firm is diversifying its Bitcoin investment approach since the company registered a new sister company in the British Virgin Islands. This is in an effort to consolidate its standing in the market of cryptocurrencies and grow the limit of its BTC holdings in an organic manner as part of its monetary planning.
Having acquired new investments every day in the last month, Metaplanet now has 203. 2 million dollars at the time, which are credited to Aug’s account. 05 billion yen. As of now, the Market cap of Metaplanet is 14. 5 billion yen, out of which 2 billion yen of its value is stored in Bitcoins on its books. The proportion of Bitcoin in the Metaplanet holdings is gradually increasing, and with that, some have predicted that it will cross 100% in the near future. The firm earlier bought Bitcoin on 23rd April, 10th May and 11th June relying on a pattern of MicroStrategy, a U.S business intelligence firm.
In this manner, Metaplanet’s decision is a clear reaction to a constant decline in economic revenues in Japan. Such pressures are high government debt, the persistence of negative real interest rates and, consequently a feeble Yen. Due to these economic challenges the firm has adopted the usage of Bitcoin as an investment and a form of reserve. This is a trend across different businesses around the world for instance MicroStrategy where companies are now investing in Bitcoin as an inflation hedge.
Impact on Metaplanet’s Stock Price
The Bitcoin price has recently crashed another 5.8% in the last 24 hours, slipping to an intraday low of $54,420. However, it has bounced back partially to $55,500 following Metaplanet’s BTC purchase. Moreover, Metaplanet’s stock price has registered significant gains since adopting a Bitcoin strategy. After seeing some volatility earlier today, the stock price gained 2.5% in the post-lunch trading session in Japan, following the Bitcoin buying news.
Since the beginning of 2024, Metaplanet’s stock is already up by 382%, largely fueled by the company’s Bitcoin adoption strategy. Last month, Metaplanet’s share price reached a high of 107 yen. Analysts are keen to see if this rally can continue further.
Metaplanet’s Bitcoin stockpiling and specific investment show that the application of cryptocurrency as a hedge is becoming more popular. This is anticipated to continue on the realisation part of Bitcoin as a reliable reserve currency by companies.
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