Crypto News- Metaplanet Increases Bitcoin Investment Amid Market Volatility

Crypto News- Metaplanet Bolsters Bitcoin Holdings with $2.5 Million Purchase

Crypto News– Metaplanet, a publicly listed investment and consulting firm based in Japan, is increasing its Bitcoin investment despite recent price declines. On July 7, the firm officially announced the purchase of 42,466 bitcoins for 400 million Japanese yen (approximately $2.5 million).

With this latest acquisition, Metaplanet now holds a total of 203,734 BTC, acquired at an average price of around 10 million yen ($62,000) per coin. This average purchase price represents a premium of about 7% over the current BTC price at the time of the transaction.

Metaplanet’s Stock Declines Amid Bitcoin Price Downturn

In April 2024, Metaplanet made a significant foray into Bitcoin by adopting it as a treasury asset and initiating its first Bitcoin purchase totaling $6.5 million.

The announcement on April 8 highlighted that Metaplanet’s decision to enter the Bitcoin market was endorsed by prominent figures in the industry, including Mark Yusko, founder of Morgan Creek Capital, Jack Liu from Ordiswap, and supported by entities like Sora Ventures and UTXO Management. This move earned Metaplanet the moniker Asia’s MicroStrategy, drawing parallels to MicroStrategy’s strategic shift towards Bitcoin in 2020. MicroStrategy’s Bitcoin acquisition strategy since then has amassed over 226,331 BTC as of June 24, costing the company $7.538 billion at an average price of $35,158 per BTC.

Metaplanet Sees Stock Decline Amid Falling Bitcoin Prices

Metaplanet’s entry into Bitcoin had a profound impact on its market performance. Following the announcement, the company’s stock price surged by approximately 90%. However, as Bitcoin prices experienced a significant decline, Metaplanet’s shares also saw a downturn.

From its peak at 107 yen ($0.66) on June 11, Metaplanet’s stock dropped by 25% alongside Bitcoin’s decrease from around $70,000 to below $60,000. Currently, according to TradingView data, the company’s stock is trading at 80 yen ($0.5), still reflecting a substantial 344% increase since the beginning of 2024.

In late June, Metaplanet unveiled a plan to issue 1 billion yen ($6.26 million) in bonds aimed at funding its Bitcoin purchases. Similarly, Michael Saylor’s MicroStrategy has also announced multiple convertible note raises in 2024 to bolster its investments in Bitcoin.

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