- Metaplanet amplifies its bullish stance on Bitcoin by committing $61 million.
- The firm’s stock drops despite aggressive BTC acquisition.
As an analyst with over a decade of experience in the financial markets, I find Metaplanet’s recent move to invest $61 million in Bitcoin intriguing. The firm’s strategic decision to increase its BTC holdings, even during market dips, underscores their long-term bullish outlook on the cryptocurrency.
Japanese financial heavyweight, Metaplanet Inc, has strengthened its optimistic position towards Bitcoin [BTC], committing approximately 61 million dollars to the leading digital currency.
Metaplanet’s Bitcoin strategy goes strong
On the 23rd of December, the company declared that it purchased an extra 619.7 Bitcoins for approximately 15.3 million yen per Bitcoin, which amounts to about $97,786 per Bitcoin. This addition now raises their total Bitcoin holdings to approximately 1,761.98 Bitcoins. With current prices, this equates to a value of over $164 million.
This significant investment, roughly equating to $167.1 million, underscores Metaplanet’s belief in Bitcoin’s possible growth as a crucial component of their investment mix.
Remarkably, the company listed on the Tokyo stock exchange financed its most recent acquisition by selling bonds worth approximately 9.5 billion yen, which is equivalent to about $60.6 million.
This coincided with…
As a crypto investor, I’ve noticed a significant drop in the value of Bitcoin this week. At the moment of press, Bitcoin had fallen below the $100K mark to $94,026.54, translating to a 12.06% decrease in its value over the past week, as reported by CoinMarketCap.
This highlighted that Metaplanet embraced the “buy the dip” philosophy and underscored its long-term bullish outlook on the cryptocurrency, even amid short-term market volatility.
Since May, when Metaplanet decided to use Bitcoin (BTC) as a strategic reserve asset, it has consistently increased its holdings of this digital currency.
Over the past week, a Tokyo-based company restated its dedication by disclosing intentions to speed up Bitcoin purchases using bond sales.
Is Metaplanet following MicroStrategy’s footsteps?
It’s worth noting that Metaplanet’s method resembles the tactic first used by the American tech titan, MicroStrategy. This firm started purchasing Bitcoin in 2020 with the aim of boosting shareholder benefits.
Using approximately 444,262 Bitcoins valued at around $41 billion, MicroStrategy’s approach is serving as a notable example for Metaplanet to follow in its strategy.
As a researcher delving into this fascinating field, I’ve observed that MicroStrategy strategically utilizes its Bitcoin assets by securitizing them, thereby providing investors with an indirect investment opportunity via their publicly traded shares on the Nasdaq market.
Impact on its stock price
In a similar vein, Metaplanet has been actively buying up Bitcoin (BTC). However, the company’s share price has seen some ups and downs lately.
On the 23rd of December, Metaplanet’s shares decreased by 0.98%, finishing at 3,540 yen or approximately $22.52. As reported by Google Finance’s latest data, the stock continued to decline and ended at 3,220 yen on the 24th of December—representing a drop of 9.04% in a single day.
Currently, the company’s year-to-date (YTD) growth is a remarkable 1,982% as reported by Yahoo Finance. Yet, these latest drops suggest increased market instability, even with the company’s dedication to Bitcoin.
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2024-12-24 15:03