Metaplanet, known as “Asia’s MicroStrategy,” saw a significant surge in its shares on Tuesday following the announcement of its third million-dollar Bitcoin purchase in seven weeks.
The company disclosed on June 11 that it had acquired 23.25 Bitcoin, valued at nearly $1.59 million. This brought its total Bitcoin holdings to 141.07 Bitcoin, worth $9.6 million, with an average purchase price of 10,278,391 Japanese yen per Bitcoin.
With Bitcoin’s current price at $68,313, Metaplanet has gained 4.5% on its investment, according to CoinGecko data. Investors reacted positively to the news, leading to a 10.8% increase in Metaplanet’s stock price to 92 yen before settling at 89 yen on the Tokyo Stock Exchange.
Since revealing its Bitcoin investment strategy on April 9, 2024, Metaplanet has witnessed a fivefold increase in its stock value. With its first Bitcoin purchase on April 23, followed by another acquisition on May 10, the company now ranks as the 30th-largest corporate Bitcoin holder globally.
Following in the footsteps of MicroStrategy, Metaplanet announced on May 13 its plans to utilize various capital market instruments to enhance its Bitcoin reserves. This strategic move aims to protect the company against Japan’s escalating debt burden and the devaluing Japanese yen.
Metaplanet highlighted Japan’s debt-to-GDP ratio of 261%, the highest among developed nations, as a key concern. The yen has depreciated by almost 35% against the US dollar since January 2021, while Bitcoin has surged by nearly 200% against the yen over the past year.
Despite these developments, Metaplanet’s Bitcoin holdings fall short of MicroStrategy’s substantial stash of 214,400 Bitcoin, equivalent to 1.02% of the total Bitcoin supply. While currently only available on the Tokyo Stock Exchange, efforts are underway to expand access to US investors.
In a related development, Daan Crypto Trades predicts that if Bitcoin doubles, Stacks could see a fourfold increase in 2025, creating new opportunities for investors.