3 months ago
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Metaplanet’s Bitcoin acquisition spree has been ongoing for the past few months.
Tokyo-listed Metaplanet has made yet another investment in Bitcoin (BTC). The company has recently acquired an additional $3.4 million worth of BTC at an average price of $59,200. Metaplanet CEO Simon Gerovich made the announcement on X, showcasing the company’s steadfast belief in Bitcoin as a strategic asset.
Notably, this acquisition comes on the heels of the Japanese company’s plans to secure a ¥1 billion loan (equivalent to $6.8 million) to buy Bitcoin entirely.
With this latest purchase, Metaplanet’s total Bitcoin holdings have surged to around 303 BTC, currently valued at $18 million. These holdings were accumulated at an average price of $65,800 per Bitcoin. This implies that with the current BTC price at $59,300, the company is at a 10% loss.
Metaplanet has also planned to raise around $70 million through a stock rights offering. A major portion of these funds, around $58 million, is earmarked for further Bitcoin investments.
Metaplanet’s Bitcoin acquisition spree has been ongoing for the past few months. Earlier in July, the company announced the purchase of 42.47 Bitcoins, valued at $2.42 million. This was followed by another acquisition of 21.88 BTC, worth around $1.2 million, in mid-July.
It is important to note that bitcoin verification solution leader Hoseki verifies all the company’s BTC holdings in real-time. This ensures that Metaplanet’s true Bitcoin reserves are visible to the public.
Why This Buying Spree?
Notably, Metaplanet’s buying spree mirrors that of the largest corporate Bitcoin holder MicroStrategy.
Gerovich has been candid about the challenges Metaplanet faced in the past, acknowledging that the company had started to exhibit characteristics of a “zombie company,” a term used to describe businesses that are barely able to cover their operating costs and service their debts. This realization motivated Gerovich to adopt a more aggressive financial strategy, one that includes Bitcoin acquisition.
Japan’s economic landscape, particularly the depreciating yen and the country’s high government debt, has further influenced Metaplanet’s strategy. With Japan’s public debt projected to reach $11.224 trillion by 2029, Metaplanet views Bitcoin not just as an investment but as a crucial hedge against traditional financial risks.
‘Buy the Dip’ Strategy
The latest shopping comes at a time when the broader cryptocurrency market is experiencing a downfall since August 11. Bitcoin is currently up by over 6% in the last seven days. The cryptocurrency has experienced a 25% rise in its trading volume, currently standing at $35 billion. However, BTC is still down by 19% from its all-time high of $73,750, achieved in March.
Meanwhile, MicroStrategy is also using the ongoing dip to acquire the largest cryptocurrency. In June, the firm purchased 11,931 BTC at an average price of 65,800.
