Metaplanet Buys $1.2M in Bitcoin as Price Nears $65K

YEREVAN (CoinChapter.com) — Bitcoin-stacking firm Metaplanet has bought 21.88 Bitcoin worth over $1.2 million (200 million Japanese yen) on July 16. This purchase comes amid a rally in Bitcoin’s price, pushing it close to $65,000.

The Tokyo-based company‘s latest acquisition brings its total Bitcoin holdings to 225.6 Bitcoin, valued at approximately $14.6 million. This move aligns with their ongoing investment approach, aimed at capitalizing on Bitcoin’s growth.

Shares Surge 22% After Latest BTC Purchase

Following the announcement, Metaplanet’s share price spiked by 22% in the first 30 minutes of trading on the Tokyo Stock Exchange. According to Google Finance, the price rose from 117 yen to $0.74, reflecting the market’s positive response to the purchase.

This surge is not isolated. Over the past 24 hours, Bitcoin’s price increased by 4.4%, further influencing Metaplanet’s stock performance. The company’s shares have soared nearly six-fold since they announced their Bitcoin investment strategy on April 9, 2024.

Metaplanet Acquires 42.46 Bitcoin Amid Market Dip

Earlier this month, the company took advantage of a dip in Bitcoin’s price. On July 7, they acquired 42.46 Bitcoin for $2.5 million (400 million yen). This proactive approach highlights their commitment to leveraging market conditions for long-term gains.

Despite these efforts, the firm’s average purchase price of Bitcoin is $62,890, making their holdings only 2.8% above cost. Nevertheless, their strategy aims to mitigate risks associated with Japan’s economic challenges.

Company Invests in Bitcoin to Hedge Against Yen Devaluation

Metaplanet’s investment in Bitcoin is part of a broader strategy to hedge against Japan’s increasing debt burden and the devaluation of the yen. Since January 2021, the Japanese yen has depreciated nearly 54% against the US dollar. In contrast, Bitcoin has appreciated over 145% against the yen in the past year.

Above all, the company’s approach mirrors that of MicroStrategy, the largest corporate Bitcoin holder. It has been dubbed “Asia’s MicroStrategy” due to its similar investment tactics.

21st-Largest Corporate Bitcoin Holder

Metaplanet’s latest purchase solidifies its position as the world’s 21st-largest corporate holder of Bitcoin, according to CoinGecko.

Bitcoin is currently trading at $63,778.71, marking a 10.93% increase over the last week.

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