Metaplanet, a Japanese company, announced on June 11 a purchase of 23.351 BTC worth about $1.59 million, elevating its BTC holdings to 141.07, worth $9.6 million.
This pro-bitcoin move by Metaplanet triggered a remarkable 10.8% price surge in its publicly traded shares.
Metaplanet Buys 23.351 BTC
The Tokyo-based company, which has earned the nickname Asia’s MicroStrategy, announced that following the latest purchase round, its bitcoin holdings were bought at an average price of 10.27 million Yen, an equivalent of about $65,365.
This recent acquisition follows two previous ones of about 97.85 BTC and 19.87 BTC on April 23 and May 10, respectively. Albeit owning only a tiny fraction of BTC compared to behemoths like MicroStrategy, Metaplanet now stands as the world’s 30th largest corporate holder of the asset.
Following the announcement of the new BTC acquisition, Metaplanet’s stock has jumped by about 10%. Moreover, since unveiling its bitcoin investment strategy on April 9, Metaplanet’s stock has hiked by about 368% from a low of 19 Yen to the current 89 Yen. These price hikes testify to investors’ approval of the move into crypto.
When announcing its BTC strategy, Metaplanet highlighted a few factors behind its decision. Bitcoin is a good hedge against the rapidly surging Japanese international debt burden. Japan’s debt-to-GDP ratio stood at 261 in early 2024, the highest of all developed countries.
Moreover, bitcoin can be a huge hedge against the rapid depreciation of the Yen. Since January 2021, the Yen has depreciated by about 35% against the USD, while BTC has appreciated over 200% against the Yen in the past year alone. Hence, Metaplanet wants to reduce its exposure to the weakening Yen and take advantage of the potential of BTC.
Corporates Reap Rewards as Bitcoin Surges
As the most prominent cryptocurrency dances slightly above $67K, Metaplanet’s bitcoin exposure boasts an unrealized profit of about 2.5%. These profits come even as BTC trades a few thousand below its all-time high of $73K.
Metaplanet vows to continue expanding its bitcoin reserve. Following the footsteps of MicroStrategy, Metaplanet revealed on May 13 plans to use “a wide range of capital markets instruments” as it increases its BTC reserves.
Like Metaplanet, corporate investors, including MicroStrategy, are reaping massive rewards. Saylor Tracker data reveals that the firm he co-founded has an unrealized profit of nearly $6.5 billion on its BTC exposure.
This trend extends beyond Metaplanet and MicroStrategy. Just yesterday, Canada’s DeFi Technologies added 110 BTC to its treasury, causing an 11% spike in stock prices.
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