Metaplanet Inc., a Japanese investment firm listed in Tokyo, saw its shares surge by 15.1% on Tuesday following the company’s latest Bitcoin acquisition. In a filing, Metaplanet disclosed that it had acquired an additional 124.1 BTC at an average price of approximately 14.1 million yen ($91,266) per coin, bringing the total value of the purchase to $11.3 million.
With this latest purchase, Metaplanet’s total Bitcoin holdings have increased to 1,142.2 BTC, now valued at $104.8 million.
Metaplanet’s Stock Performance in 2024
Metaplanet’s stock closed at 2,295 yen, with daily trading volume reaching 21.9 billion yen ($141.7 million), according to Futu data. The company’s stock has soared 1,334% year-to-date, significantly outperforming market benchmarks like the Nikkei 225 index, which gained just 0.5% on the same day.
Simon Gerovich, Metaplanet’s CEO, shared on X that the company ranked 29th among 4,000 Japanese firms by trading value, surpassing major players like Itochu and NTT. The firm’s aggressive Bitcoin acquisition strategy is part of a broader move to adopt cryptocurrency as a treasury reserve asset, a plan first outlined in May.
Impressive Bitcoin Yield and Financing Plans
From October 1 to November 19, Metaplanet reported an impressive 186.9% yield on its Bitcoin holdings. To support further acquisitions, the company recently issued one-year ordinary bonds worth 1.75 billion yen ($11.3 million), which are due for redemption in November 2025.
The increasing institutional interest in Bitcoin as a treasury reserve asset is reflected in other companies, such as MicroStrategy, which has been expanding its Bitcoin holdings. The current macroeconomic environment, marked by rising inflation and geopolitical tensions, has encouraged more corporate treasurers to explore Bitcoin as a hedge and reserve asset.
MicroStrategy’s Remarkable Bitcoin Strategy
In related news, MicroStrategy, the largest corporate holder of Bitcoin, saw its shares jump 13% on Monday, reaching a record high. The company announced it had acquired an additional $4.6 billion worth of Bitcoin and plans to raise $1.75 billion through convertible notes to further expand its crypto holdings. MicroStrategy’s stock has surged by over 500% in 2024, far outpacing other tech stocks, including Microsoft, which gained just 11%.
As of now, MicroStrategy holds 331,200 BTC, purchased at an average price of $88,627 per coin, with its Bitcoin stash valued at around $13.7 billion in unrealized profits. The company plans to issue senior convertible notes with a 0% interest rate, maturing in December 2029, to fund further acquisitions. These notes offer investors the option to convert debt into equity, a strategy the company has successfully employed in previous funding rounds.
Political Moves to Adopt Bitcoin
Additionally, there has been growing interest in incorporating Bitcoin into state-level reserves. Recently, Pennsylvania State Representative Mike Cabell introduced a bill that would allow the state to invest up to 10% of its funds in Bitcoin. The proposed “Strategic Bitcoin Reserve” bill would give the state treasurer the authority to invest portions of the General Fund, State Investment Fund, and Rainy Day Fund in Bitcoin, signaling further institutional acceptance of the cryptocurrency as a store of value.
