Metaplanet Expands Bitcoin Holdings with ¥200M Acquisition

Tokyo-based Metaplanet continues to bolster its Bitcoin reserves amid global economic challenges.

Tokyo-based Metaplanet has announced the acquisition of an additional 21.88 Bitcoin, valued at ¥200 million (approximately $1.3 million). This purchase brings the company's total Bitcoin holdings to over 225.6 BTC, worth more than $14.5 million. The strategic move aligns with Metaplanet's broader plan to adopt Bitcoin as a primary treasury reserve asset, a trend mirrored by several other major investors.

Earlier this year, Metaplanet made several significant Bitcoin purchases, including a ¥400 million acquisition in early July. The company's stock price has surged by over 25% following the latest announcement, as reported by Google Finance.

To fund its Bitcoin investments, Metaplanet employs various financial strategies, including equity financing and fiat currency market arbitrage. Last month, the firm disclosed plans to purchase an additional ¥1 billion worth of Bitcoin, financed through a bond issuance with a 0.5% annual interest rate, maturing in June 2025.

The decision to increase Bitcoin holdings is driven by Japan's economic challenges, particularly the significant decline in the yen, which has depreciated by 50% against the US dollar over the past decade. Metaplanet regards Bitcoin as a hedge against the yen's devaluation, viewing it as "fundamentally superior to traditional political currencies and investment assets."

This strategy reflects a global trend of accumulating Bitcoin. Data from BitcoinTreasuries reveals that public companies worldwide hold 324,423 BTC as of mid-July, with MicroStrategy leading the charge with over $14.5 billion worth of Bitcoin.

Metaplanet's recent purchase coincides with a market resurgence, with Bitcoin's value rising over 3% to $64,500 in the past 24 hours, according to CoinGecko. This rally follows a period of stagnation due to selling pressure from the German government and ongoing Mt. Gox payouts. The German government recently exhausted its original Bitcoin holdings, previously valued at around $2.2 billion.

In the U.S., spot Bitcoin ETFs have seen substantial inflows, with over $1 billion in BTC acquired last week. BlackRock’s IBIT and Ark Invest’s ARKB led the inflows, each pulling in $117 million. These funds' growing popularity underscores the increasing mainstream acceptance and institutional interest in Bitcoin.

Metaplanet's ongoing Bitcoin acquisitions highlight a strategic approach to safeguarding against economic volatility and capitalizing on the potential long-term value of digital assets.

photo source / Blockonome