Tokyo-based investment firm Metaplanet Inc. has significantly expanded its Bitcoin (BTC) holdings, investing $10.4 million to purchase 156.78 BTC.
The average price of Bitcoin paid during this acquisition was 10.2 million yen per Bitcoin, but Metaplanet now holds a Bitcoin reserve of 1,018.17 BTC. That gives the firm a substantial position in Asia’s crypto sector, valued at around $68.8 million.
‘We’re going to be in Bitcoin for the long term, as a reserve asset,’ Metaplanet CEO Simon Gerovich confirmed.
Since May, Metaplanet has been gradually growing its Bitcoin portfolio, beginning with a more humble position of 141.07 BTC. But in June, the company’s reserves steamed past 398.83 BTC and are now well over 1,000 BTC, indicating that the company’s Bitcoin strategy has been on a steady rise.
Metaplanet’s recent acquisition fits the company’s extensive plans to incorporate Bitcoin treasury management. Even with such significant investments in Bitcoin, Metaplanet stressed that shareholders own no portion of this cryptocurrency capital. History has also kept the firm from paying dividends on ordinary shares and focusing on capital reinvestment.
Metaplanet’s Stock Rises Amid Bitcoin Investment Strategy
A recent stock acquisition rights offer raised approximately 10 billion yen of fresh capital to support Metaplanet’s Bitcoin acquisition strategy. Last week’s funding round saw 13,774 individuals participating by purchasing new shares priced at a discount of 555 yen per share.
Earlier this month, Metaplanet’s stock price was trading at approximately 700 yen when the offering was announced, making it an appealing time to get in on the action.
With this offering, Metaplanet has raised capital that will allow it to increase its Bitcoin holdings while maintaining financial flexibility.
The company has a substantial influx of finance and earns money from core operations, which will support disciplined investments in cryptocurrency. Therefore, the company’s stock rose 5.9% on Monday’s trading on the Tokyo exchange to show investor confidence in its digital asset strategy.
In addition, Metaplanet has partnered with Hoseki, a global market leader in Bitcoin verification solutions, to verify the transparency of our cryptocurrency holdings.
Through this collaboration, Metaplanet can have its Bitcoin assets verified independently for investors and shareholders. Hoseki Verified bolsters Metaplanet’s Bitcoin reserve credibility and demonstrates its dedication to portfolio transparency in digital assets.
Corporations Embrace Bitcoin as Digital Asset Hedge
As corporations focus on alternative assets as they navigate macroeconomic uncertainties, Metaplanet also focuses more on Bitcoin.
As corporations bustle along in their pursuit of ways to hedge against volatility in the face of rising inflation and increasing geopolitical tensions, it’s no wonder that corporate treasurers have been looking into Bitcoin as a digital asset hedge for years. Earlier this month, Abra, a financial services platform, created a dedicated service for syncing up corporates that want to purchase and hold cryptocurrencies as a reserve asset.
The trend is now spreading worldwide, with more companies realizing that Bitcoin has the potential to diversify their portfolios. As a corporate digital asset player in Asia, Metaplanet is a major stakeholder in Bitcoin. The firm’s proactive move to broaden its cryptocurrency portfolio will likely affect other firms looking to follow suit.
In response to questions about future acquisitions, Metaplanet’s CEO reconfirmed the company’s long-term commitment to its Bitcoin strategy.
This position places the firm in the digital asset landscape, and the firm’s robust capital position and transparent reporting practices help underpin that position. Metaplanet’s recent purchase of Bitcoin is the most recent step in converting its corporate treasury management to cryptocurrency.
