Metaplanet Secures $6.5 Million in Bitcoin, Continues October Investment Streak
Metaplanet Inc., a Tokyo-based company known for its bold venture into Bitcoin (BTC), recently revealed its acquisition of an additional 108.999 Bitcoin for ¥1 billion (US$6.5 million) on Friday. This latest purchase has boosted the company’s total Bitcoin holdings to 748.502 BTC, solidifying its long-term commitment to the primary cryptocurrency. However, Metaplanet’s approach to acquiring Bitcoin extends beyond simple spot purchases.
The company employs a sophisticated strategy by selling put options alongside its Bitcoin acquisitions to generate additional yield, as explained by Peter Chung, Head of Research at Presto Labs. Chung highlighted that this strategy enables Metaplanet to capitalize on potential BTC price declines, showcasing a level of sophistication uncommon among other companies.
Following earlier purchases this month, the recent acquisition adds to the company’s total Bitcoin investment, now amounting to ¥6.9 billion (US$46.8 million) with a total of 748.502 BTC, equivalent to approximately $45.2 million based on Bitcoin’s value of $60,420.
Chung noted Metaplanet’s position as one of the three Asia-based public companies actively purchasing Bitcoin for their treasuries, alongside Nexon and Meitu. The company is leveraging the recent strength of the Japanese yen against the U.S. dollar to enhance its Bitcoin investment, a strategy initiated in April 2024.
Metaplanet’s leadership views Bitcoin investment as a highly valuable endeavor for its shareholders, a sentiment that initially propelled its stock price from ¥190 (US$1.32) to a peak of ¥1,008 (US$7.01). Subsequently, the stock price has stabilized at $6.40.
The company’s Bitcoin strategy draws parallels with that of MicroStrategy, a U.S.-based software firm renowned for its significant cryptocurrency holdings. Metaplanet has positioned itself as “Asia’s answer to MicroStrategy” by incorporating Bitcoin into its treasury strategy. This move aligns with a broader trend among companies integrating crypto assets into their long-term investment plans, exemplified by Tesla’s $1.5 billion USD Bitcoin investment in 2021 and Square’s strategic Bitcoin investments in 2020 and 2021.
In conclusion, Metaplanet’s strategic approach to Bitcoin acquisition reflects a growing trend among companies worldwide, showcasing the increasing adoption of cryptocurrencies as part of long-term investment strategies.
