Japanese investment firm Metaplanet has announced a significant addition to its Bitcoin holdings. Shortly after the Tokyo Stock Exchange closed on Monday, the company revealed its purchase of an additional 20.195 BTC for 200 yen ($1.2 million).
This acquisition brings Metaplanet’s total Bitcoin holdings to 161.2677 BTC, valued at over $10.1 million at current prices. The firm acquired these Bitcoins for a cumulative amount of 1.65 billion yen ($10.2 million), averaging a purchase price of $63,427 per Bitcoin.
On June 24, Metaplanet’s board of directors approved a plan to purchase Bitcoin worth 1 billion yen ($6.3 million) using capital from an upcoming bond issuance. Monday’s purchase is the first step in this plan, following an earlier acquisition of 250 million yen worth of Bitcoin in June.
Metaplanet’s strategy mirrors that of U.S. business intelligence firm MicroStrategy, which has been a prominent Bitcoin investor since 2020. “The move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen,” the company stated in May.
MicroStrategy currently holds 226,331 BTC ($14.1 billion), representing more than 1% of Bitcoin’s total supply. Their most recent purchase was 11,931 BTC for $786 million. Metaplanet’s strategic purchases are seen as a response to similar economic conditions and as part of a broader trend among firms looking to Bitcoin as a reserve asset.
Metaplanet’s stock, traded on the Tokyo Stock Exchange, saw a 1% increase on Monday and has surged over 233% since the firm began buying Bitcoin, according to TradingView.
Metaplanet’s continued investment in Bitcoin highlights the growing trend of companies adopting cryptocurrency as a hedge against economic instability. This strategic move aims to capitalize on Bitcoin’s potential for long-term value appreciation amidst Japan’s challenging economic landscape.