Metaplanet Inc. Expands Bitcoin Treasury: What This Means for Corporate Crypto Investments
Metaplanet Inc. announced on Tuesday that it has added another $6.8 million in Bitcoin to its treasury, raising its total Bitcoin holdings to $56 million (approximately 855.478 BTC). This latest acquisition underscores the company’s ongoing aggressive buying strategy that commenced in April 2024.
Aggressive Investment Strategy
To date, Metaplanet has invested around $53 million (¥7.965 billion Japanese yen) in Bitcoin, with an average purchase price of $61,663 per BTC. This bold approach to accumulating Bitcoin has drawn comparisons to MicroStrategy, the corporate giant known for amassing substantial Bitcoin reserves as part of its treasury management strategy. Metaplanet has positioned Bitcoin as a long-term asset aimed at enhancing shareholder value, branding itself as “Asia’s answer to MicroStrategy.”
Rising Competition in the Corporate Bitcoin Space
MicroStrategy, led by Michael Saylor, currently holds over 252,000 BTC, making it the largest corporate holder of Bitcoin by a significant margin. The next largest holder is Marathon Digital, a Bitcoin mining company, with 26,842 BTC as reported by BitcoinTreasuries. However, with its aggressive purchasing patterns, Metaplanet is quickly establishing itself as a formidable competitor among Asia-based companies.
Peter Chung, Head of Research at Presto Labs, a quantitative trading firm in Singapore, stated that Metaplanet is “one of the three Asia-based public companies buying BTC for their treasury,” alongside Nexon and Meitu.
Innovative Investment Techniques
What distinguishes Metaplanet from other corporate Bitcoin buyers is its sophisticated strategy that involves selling put options in conjunction with its Bitcoin purchases. This approach aims to generate additional yield. Chung noted, “Metaplanet’s strategy allows them to bottom-fish in case the BTC price declines, a level of sophistication not commonly seen among other companies.”
Metaplanet’s continued investment in Bitcoin is part of a broader trend among companies integrating crypto assets into their long-term investment strategies. The firm’s approach reflects that of major corporations such as Tesla, Block Inc. (formerly Square), and PayPal, all of which have incorporated Bitcoin into their balance sheets in recent years.
Notable Corporate Investments
For example, Tesla made headlines in 2021 with a $1.5 billion investment in Bitcoin, although it later sold part of its holdings. Similarly, Block Inc. invested $50 million in 2020 and an additional $170 million in 2021, demonstrating growing corporate confidence in Bitcoin as a long-term asset.
Market Performance
Following the news of its increased Bitcoin investments, Metaplanet’s stock surged by 15% on Tuesday, reaching 1,105 JPY or approximately $7.42 USD, according to data from Google Finance.
FAQ
What is Metaplanet Inc.?
Metaplanet Inc. is a Tokyo-listed company that has recently gained attention for its aggressive Bitcoin acquisition strategy. It aims to position itself as a significant player in the cryptocurrency market, similar to companies like MicroStrategy.
How much Bitcoin has Metaplanet Inc. acquired?
As of now, Metaplanet Inc. has added $6.8 million worth of Bitcoin to its treasury, bringing its total holdings to approximately $56 million, which equals about 855.478 BTC.
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