3 months ago
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Metaplanet initially secured a 1 billion yen loan to continue its Bitcoin acquisition spree and has now hit its investment target for that loan.
Metaplanet Inc. announced on August 20th that it has invested an additional 500 million yen ($3.4 million) to acquire 57.273 more BTC. With this latest purchase, the company’s total Bitcoin holdings have reached 360.368 BTC. Earlier, Metaplanet set an investment goal of 1 billion yen ($6.8 million) for Bitcoin, and secured a 1 billion yen loan specifically to fund its Bitcoin acquisition strategy. According to the latest update, Metaplanet has now successfully met the investment target for which the loan was initially secured.
Metaplanet Boosts Bitcoin Portfolio amid Economic Turbulence
Certainly, Metaplanet’s newfound love for accumulating Bitcoin is one that raises curiosity. However, for the company, its recent actions are merely a calculated response to the economic woes of Japan. With high levels of government debt, persistently negative real interest rates, and a yen that weakens by the day, the firm has identified Bitcoin as a crucial asset for its treasury reserve. The strategy, started in May, is an attempt by Metaplanet to wriggle out from under the pressures of the prevalent financial crisis by seeking stability through digital currency.
Stock Rises
Meanwhile, the recent announcement has had an almost immediate impact on the Tokyo Stock Exchange. The company’s shares surged by 10.87% on Tuesday morning, trading at 1,193 yen. That is, after peaking at around 1,293 yen earlier in the session.
However, the rally is not exactly an isolated one as it coincides with a broader market uptick. Nikkei 225 index, for instance, is also showing a 1.7% increase for the day.
By steadily growing its Bitcoin portfolio, Metaplanet now stands shoulder to shoulder with the bigwigs of the corporate crypto industry. As of publication, MicroStrategy, led by Michael Saylor, holds the largest corporate Bitcoin reserve with 226,500 BTC. Following them is Marathon Digital, which owns 25,000 BTC. Metaplanet’s aggressive acquisition strategy may have caught the attention of the industry, but its place in the corporate bitcoin market is still a little far behind. CoinGecko data suggests that Metaplanet ranks the 20th institution. That is, in terms of their total Bitcoin holdings.
Nonetheless, companies like Metaplanet continue to invest heavily into Bitcoin in order to position themselves properly for the fast-paced evolution of finance. This reflects a major shift in how traditional investment firms now perceive blockchain and cryptocurrency.
