Metaplanets Stock Soars Following Third MillionDollar Bitcoin Acquisition

Metaplanet Sees Stock Surge After Third Million-Dollar Bitcoin Purchase


Ruholamin Haqshanas
Published:
June 11, 2024 02:50 EDT
|
Reading Time: 2 minutes


Metaplanet’s stock has skyrocketed by double digits following the announcement of yet another million-dollar Bitcoin (BTC) acquisition.
In a statement released on June 11,
Metaplanet revealed the purchase of 23.25 Bitcoin
(BTC), valued at almost $1.59 million, marking the company’s third Bitcoin investment in just seven weeks.
This latest purchase brings their total Bitcoin holdings to 141.07 Bitcoin, worth approximately $9.6 million.
The average price per BTC was $65,365 or 10,278,391 Japanese yen.
Metaplanet Sees 4.5% Gain on BTC Investment
With Bitcoin’s current price at $68,313, Metaplanet has seen a 4.5% return on its Bitcoin investment, according to CoinGecko.
Investors responded positively to this news, causing Metaplanet’s stock to surge 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, as reported by Google Finance.
Since unveiling its Bitcoin investment strategy on April 9, 2024, Metaplanet’s stock has surged 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 ranks as the 30th largest corporate holder of Bitcoin globally.
Similar to MicroStrategy, the largest corporate Bitcoin holder, Metaplanet announced on May 13 that it would utilize various capital market instruments to bolster its Bitcoin reserves.
This strategy aims to hedge against Japan’s increasing debt burden and the rapid devaluation of the Japanese yen.
Metaplanet highlighted Japan’s debt-to-GDP ratio of 261%, the highest among developed nations.
Over the past year, the Japanese yen has depreciated by around 35% against the US dollar, while Bitcoin has surged by almost 200% against the Japanese yen.
Despite its recent Bitcoin acquisitions, Metaplanet’s holdings still pale in comparison to MicroStrategy, which owns 214,400 Bitcoin, equivalent to roughly 1.02% of the total Bitcoin supply.
Currently, Metaplanet is exclusively traded on the Tokyo Stock Exchange, limiting access for US investors.
Back in April, Metaplanet
announced its decision
to include Bitcoin in its treasury assets due to several factors.
Firstly, it aims to reduce its exposure to the Japanese yen, which has been significantly impacted by Japan’s low-interest-rate environment.
In a shareholder update, Metaplanet expressed concerns 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 growth.
Corporate Bitcoin Investors Begin to Reap Benefits
Several major corporate investors in Bitcoin, including Microstrategy, have already witnessed significant profits.
Based on data compiled by
Saylortracker
, at current market prices of approximately $67,000, MicroStrategy’s holdings now exceed a total valuation of $14.59 billion.
This translates to the company
holding substantial unrealized profits
of nearly $6.5 billion on paper – representing an almost 104% gain year-to-date from an investment started under Saylor back in 2020.
Currently, Bitcoin is trading at around $67,900, slightly down by more than 2% in the past day.
The leading cryptocurrency is
8% below its all-time high
of $73,750 recorded on March 14.
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