Metaplanet Shares Up 16% After Major Bitcoin Purchase

The Japanese investment firm doubles down on Bitcoin, boosting its total holdings and following a strategy inspired by MicroStrategy.

Shares in Japanese investment firm Metaplanet surged 15.7% on October 15, following the company’s announcement that it had purchased nearly 107 Bitcoin in its latest move to expand its cryptocurrency holdings. The firm’s Bitcoin investment strategy continues to pay off, propelling its stock price to new heights.

The purchase brings Metaplanet’s total Bitcoin holdings to 855.5 BTC, valued at more than $56.1 million, according to the company’s statement. Metaplanet revealed that it spent approximately $6.7 million (1 billion yen) on the acquisition, purchasing each Bitcoin at an average price of $62,520—around 5.8% below the market price of $66,200 at the time of the announcement.

The Tokyo Stock Exchange reflected this bullish sentiment, with Metaplanet (TYO: 3350) shares rising to 1,105 yen ($7.38) before the market paused for lunch. This represented a 15.7% increase from the previous day’s close. Metaplanet’s stock has now skyrocketed by 480% since it first unveiled its Bitcoin investment strategy in April 2024.

In total, Metaplanet has spent the equivalent of $53.2 million on its 855 Bitcoin and is already seeing a 5.4% gain on its investment. The company has more than doubled its Bitcoin holdings in October alone, making four significant purchases throughout the month. These include 109 BTC on October 11, 108.8 BTC on October 7, and a combined 132 BTC in two separate transactions on October 1 and 3.

The firm’s latest Bitcoin buying spree has coincided with a broader market rally. Bitcoin’s price surged over 9%, reaching $65,500 between Metaplanet’s purchase on October 11 and the announcement of its most recent buy. The ongoing upward momentum in Bitcoin’s value further underscores the success of Metaplanet’s aggressive investment strategy.

Metaplanet’s CEO, Simon Gerovich, has openly admitted that the company’s approach is heavily inspired by MicroStrategy’s well-known Bitcoin investment playbook. MicroStrategy, led by executive chairman Michael Saylor, currently holds over 252,000 BTC, valued at a staggering $16.45 billion. Gerovich has made it clear that Metaplanet intends to follow a similar path, utilizing a variety of capital market instruments to continue bolstering its Bitcoin reserves.

In August, Metaplanet took out a $6.8 million loan from one of its shareholders to facilitate further Bitcoin purchases, demonstrating the firm’s commitment to its long-term Bitcoin investment strategy.

With its latest acquisition, Metaplanet now ranks as the 23rd largest Bitcoin holder among public companies, according to data from Bitcoin Treasuries. As the firm continues to build its Bitcoin portfolio, its stock performance reflects growing investor confidence in its bold and forward-thinking approach to cryptocurrency investment.

photo source / Blockonome