Japanese early-stage investment firm Metaplanet today purchased an additional $2 million worth of Bitcoin, reaffirming the firm’s confidence in the leading digital asset.
‘Japanese MicroStrategy’ Bolsters Its Bitcoin Reserves
In a announcement On September 10, 2024, Metaplanet said it had increased its cryptocurrency holdings by 38,464 BTC, purchased for approximately 300 million yen ($2 million).
The latest purchase brings Metaplanet’s total holdings to 398,832, at an aggregated cost of 3.75 billion yen ($26 million), averaging slightly above $65,700 per BTC.
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Bitcoin’s price has surged 3.4% over the past 24 hours, trading at $57,159 at press time. Notably, the U.S. Federal Reserve is expected to embark on its rate-cutting cycle next week, with many expecting the injection of liquidity into the economy to benefit risk assets like Bitcoin.
According to data According to Google Finance, shares of Tokyo-listed Metaplanet were trading at 1,101 yen ($7.7), up 5.87% in today’s trading. In contrast, the Nikkei 225 index fell slightly by 0.16%.
Yesterday, Metaplanet disclosed that its management will exercise the 11th series of stock acquisition rights. The total proceeds from the exercise warrants are expected to be about 299.7 million yen ($2.10 million). The company noted that these proceeds will be used to purchase more BTC.
Close followers of the crypto industry would recall that it was in May 2024 that Metaplanet first made public its plans to to hug BTC as its strategic treasury reserve asset. At the time, the company emphasized its new “Bitcoin first, Bitcoin only approach,” similar to the strategy adopted by MicroStrategy.
In July 2024, Metaplanet increased its BTC holdings at 20,195, purchased for around $1.2 million at prevailing market prices. In recent months, a series of Bitcoin purchases have brought Metaplanet’s total holdings to nearly 400 BTC.
Following in MicroStrategy’s footsteps
Metaplanet’s decision to adopt Bitcoin as a strategic reserve asset is not a new practice among publicly traded companies. US-based MicroStrategy has been a vocal advocate for Bitcoin’s reliability like no other institution.
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On August 8, 2024, MicroStrategy’s Michael Saylor revealed that he owns over $1 billion worth of Bitcoin and has no plans to sell it at any time. At current market prices, this is not to be confused with MicroStrategy’s own Bitcoin. participations of 226,500 BTC worth nearly $13 billion.
More recently, Saylor predicted that the price of Bitcoin could rise to $13 million per BTC by 2045. Given the reasoning behind this ambitious price target, Saylor said that currently, BTC only represents about 0.1% of global capital. When that ratio rises to 7%, BTC could be worth $13 million per unit.
That said, it’s probably wise not to think too far ahead and consider some of the immediate challenges Bitcoin may face. For example, all eyes will be on the US Federal Reserve next week as there are fears that reducing interest rates too much and too quickly could negatively affect BTC prices.
Cover image from Unsplash, chart from Tradingview