Metaplanet Boosts Bitcoin Holdings, Stock Price Hits 2020 High
Japanese investment company Metaplanet has been making waves in the crypto world. It expects Bitcoin (BTC) to maintain its value against the Japanese yen and serve as a reliable, long-term currency. The company has been actively purchasing BTC, with its latest acquisition boosting its stock price to a 2020 high.
Metaplanet's BTC strategy kicked off in April 2024. The company designated BTC as its strategic reserve currency due to Japan's significant debt, negative interest rates, and yen instability. To fund this strategy, Metaplanet plans to raise ¥935 million (about €5 million) through 'Stock Acquisition Rights'. This will allow it to buy more BTC, aiming to reduce the share of yen in its portfolio.
The company's aggressive BTC purchases have paid off. Its latest acquisition of $1.6 million worth of BTC, increasing its holdings to 141 BTC (approximately €8.6 million), has caused its stock price to briefly reach its highest value since 2020. This is a significant move, as Metaplanet is now one of the largest publicly traded BTC holders in Japan. Notably, no other Japanese companies have been reported to have purchased BTC specifically to support their stock price.
Metaplanet's confidence in BTC's stability and liquidity has driven its strategic purchases. With its latest fundraise and acquisition, the company continues to diversify its stock market portfolio and potentially insulate itself from yen volatility. Metaplanet's BTC strategy, unique among Japanese companies, has so far proven successful in boosting its stock market today.
