Metaplanet Inc., a Tokyo-listed company renowned for its bold ventures into Bitcoin (BTC), has made headlines once again. On Friday, the firm announced its latest acquisition of 108.999 Bitcoin for ¥1 billion (US$6.5 million), further solidifying its position as one of Asia’s leading Bitcoin holders. This purchase brings Metaplanet’s total Bitcoin holdings to an impressive 748.502 BTC, worth approximately $45.2 million.
Metaplanet’s Bitcoin acquisition strategy is far from traditional. The firm employs a sophisticated approach that goes beyond simple spot purchases by selling put options alongside its Bitcoin buys. This strategy, according to Peter Chung, Head of Research at Presto Labs, enables Metaplanet to generate additional yield while preparing for potential price declines.
“Metaplanet’s strategy allows them to bottom-fish in case the BTC price drops, showcasing a level of sophistication not commonly seen among other companies,” Chung told Decrypt.
Riding The Bitcoin Wave
This latest acquisition follows several earlier purchases this month, pushing the company’s total Bitcoin investment to ¥6.9 billion (US$46.8 million). The company has made headlines for its aggressive Bitcoin strategy, positioning itself as one of the largest corporate holders of the cryptocurrency in Asia. Chung noted that Metaplanet is now among three major Asia-based public companies buying Bitcoin for their treasury, alongside Nexon and Meitu.
Metaplanet’s leadership, under the guidance of CEO Hitoshi Nakamura, has consistently emphasized Bitcoin’s potential as a long-term asset. “Investing in Bitcoin is the most valuable thing we can do for our shareholders,” Nakamura said in a statement when the company first began its Bitcoin buying spree in April 2024.
This move initially spurred a sharp rise in Metaplanet’s stock price, which surged from ¥190 (US$1.32) to a peak of ¥1,008 (US$7.01). However, the stock has since cooled to ¥920 (US$6.40), reflecting Bitcoin’s market volatility.
Asia’s MicroStrategy?
Many are comparing Metaplanet to MicroStrategy, the U.S.-based software firm that has become synonymous with large-scale Bitcoin holdings. Metaplanet’s commitment to incorporating Bitcoin as a core treasury asset mirrors MicroStrategy’s strategy, which has amassed over 150,000 BTC under the leadership of Michael Saylor. Both companies have embraced Bitcoin as a hedge against fiat currency depreciation and a means to secure long-term value for shareholders.
Like MicroStrategy, Metaplanet’s aggressive Bitcoin purchases are part of a growing trend among global companies. In 2021, Tesla made waves with a $1.5 billion Bitcoin investment, while Square (now Block Inc.) made a significant $220 million BTC investment between 2020 and 2021. These moves signify a broader acceptance of Bitcoin as a legitimate asset class for corporate treasuries.
Timing is Everything
Peter Chung also highlighted that Metaplanet’s latest acquisition is well-timed, capitalizing on the Japanese yen’s recent strength against the U.S. dollar. With Bitcoin prices hovering around $60,420, the company’s decision to purchase now appears to be a calculated move to maximize its long-term gains.
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As Bitcoin continues to be adopted by corporations worldwide, Metaplanet’s aggressive strategy may further establish its position as a pioneer in Asia’s corporate cryptocurrency space. Whether Metaplanet will continue to mirror MicroStrategy’s trajectory remains to be seen, but for now, the company’s commitment to Bitcoin is unwavering.
With a total Bitcoin investment nearing ¥7 billion, Metaplanet is staking its future on cryptocurrency, betting big that the leading digital asset will continue to rise in value.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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