In a bold move signaling confidence in the cryptocurrency market, Japan-based investment firm Metaplanet announced on Tuesday that it has significantly increased its Bitcoin reserves. According to a recent filing, the firm acquired 1 billion yen (approximately $6.95 million) worth of Bitcoin, adding 107.91 BTC to its portfolio at an average price of 9.2 million yen ($64,168) per Bitcoin. This acquisition comes at a time when market sentiment is bubbling with optimism as “Uptober” approaches, a term reflecting anticipated price surges during the month of October.
With this latest addition, Metaplanet now boasts a total of 506.7 BTC, valued at around $32 million, with an overall average acquisition cost of 9.37 million yen ($64,931) per Bitcoin. The investment firm has been on a Bitcoin acquisition spree, buying cryptocurrency consistently since it declared Bitcoin as its primary treasury reserve. This latest purchase continues a trend that has seen Metaplanet purchase Bitcoin every month since announcing its strategy.
Riding The Wave Of Bitcoin Adoption
The firm’s recent activities echo those of MicroStrategy, the pioneering tech company known for its aggressive Bitcoin acquisition strategy led by founder Michael Saylor. Often referred to as the “Asian MicroStrategy,” Metaplanet is following suit by positioning Bitcoin as a core component of its treasury, raising funds to fuel further acquisitions. In August, Metaplanet secured 1 billion yen at a modest annual percentage yield (APR) of 0.1% from UK-based MMXX Ventures Limited to finance its growing Bitcoin portfolio.
September was particularly active for Metaplanet, with the firm acquiring 38.46 BTC at an average price of 7.79 million yen ($54,030) per Bitcoin on September 10. Previous acquisitions included 104.93 BTC in July and 114.37 BTC in August. This consistent purchasing strategy underlines Metaplanet’s commitment to leveraging Bitcoin’s potential as a long-term store of value.
The Japanese Crypto Landscape
The trend of accumulating Bitcoin isn’t isolated to Metaplanet. On September 30, Japanese company Remixpoint made headlines by acquiring 64.4 BTC for approximately $4.2 million, alongside other cryptocurrencies like SOL, AVAX, and ETH, totaling a substantial $10.25 million in crypto investments. This wave of acquisitions from Japanese firms coincides with the yen’s depreciation, leading many companies to seek refuge in Bitcoin as a hedge against inflation and currency devaluation.
Stock Market Response
Following Metaplanet’s announcement, the company’s stock (3350.T) experienced a notable surge, climbing over 4% to reach 1,049 yen. However, the stock later retracted slightly, trading at 1,008 yen at the time of writing. This price fluctuation is part of a larger trend; since adopting Bitcoin as its primary reserve, Metaplanet’s stock has skyrocketed by an impressive 430% year-over-year and over 445% since it began following MicroStrategy’s lead in May.
Metaplanet’s strategic acquisitions highlight a growing trend among Japanese firms to embrace Bitcoin as a safeguard against economic uncertainties. With market enthusiasm surging and the firm’s stock performance reflecting investor confidence, it’s clear that Metaplanet is positioning itself as a significant player in the evolving landscape of cryptocurrency investments. As the world watches closely, the firm’s journey will likely inspire others to follow suit in this dynamic market.
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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