Metaplanet Shares Surge After Third Million-Dollar Bitcoin Purchase

Metaplanet has witnessed a double-digit surge in its shares following the announcement of its third million-dollar Bitcoin (BTC) purchase.

In a statement released on June 11, Metaplanet disclosed that it acquired 23.25 BTC, valued at nearly $1.59 million. This marks the company’s third Bitcoin purchase within seven weeks, bringing their total holdings to 141.07 BTC, approximately worth $9.6 million.

The average purchase price for Bitcoin was $65,365 per coin or 10,278,391 Japanese yen.

Metaplanet Gains 4.5% on BTC Investment

With Bitcoin’s current price at $68,313, Metaplanet has gained 4.5% on its investment, according to CoinGecko. This positive move led to a 10.8% rally in Metaplanet’s stock, reaching $0.59 or 92 Japanese yen. However, the stock later settled at $0.57 or 89 Japanese yen on the Tokyo Stock Exchange by midday on June 11, according to Google Finance.

Since unveiling its Bitcoin investment strategy on April 9, 2024, Metaplanet’s stock has soared nearly fivefold. The company’s initial purchase of 97.85 BTC occurred on April 23, followed by an additional 19.87 BTC on May 10, as reported by Bitcoin Treasuries. Metaplanet is now the 30th largest corporate Bitcoin holder globally.

Strategic Financial Moves

Similar to MicroStrategy, the largest corporate Bitcoin shareholder, Metaplanet announced on May 13 that it would adopt various capital market instruments to bolster its Bitcoin reserves. This strategy aims to hedge against Japan’s rising debt burden and the rapid depreciation of the Japanese yen.

Japan’s debt-to-GDP ratio stands at 261%, the highest among developed countries. Over the past year, the yen has declined by approximately 35% against the US dollar, while Bitcoin has surged nearly 200% against the yen.

Despite recent acquisitions, Metaplanet’s Bitcoin holdings remain small compared to MicroStrategy, which owns 214,400 BTC, about 1.02% of the total Bitcoin supply. Currently, Metaplanet is listed exclusively on the Tokyo Stock Exchange, limiting access for US investors.

Hedging Against Economic Instability

In April, Metaplanet incorporated Bitcoin into its treasury assets to reduce exposure to the volatile yen. In a shareholder update, Metaplanet highlighted concerns about the yen’s vulnerability and touted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation.

Corporate Bitcoin Holders Reaping Rewards

Major corporate investors in Bitcoin, including MicroStrategy, have seen significant returns. Data from Saylortracker indicates that at current market prices, MicroStrategy’s Bitcoin holdings are valued at over $14.59 billion, reflecting an unrealized profit of almost $6.5 billion, a 104% yield-to-date since its initial investment in 2020.

As of now, Bitcoin is trading at around $67,900, down by more than 2% over the past day, and is 8% away from its all-time high of $73,750 recorded on March 14.