Metaplanet Expands Bitcoin(BTC) Holdings with $2.4 Million Purchase

Metaplanet now owns 203.7 BTC, acquired at an average price of nearly $62,000 per BTC. Metaplanet, a Japanese investment firm, acquired 42.4 Bitcoin for ¥400 million ($2.4 million) to increase its holdings.

This comes as Bitcoin is trading at $57,652, down 8% in the last week and fighting to recapture the $60,000 threshold.

Metaplanet Expands BTC Holdings

Metaplanet, a Tokyo-based company, announced the strategic acquisition of Bitcoin in a press statement on July 8. This action attempts to strengthen its long-term financial strategy by retaining Bitcoin as a “strategic treasury reserve asset.” Notably, the current purchase increases Metaplanet’s overall Bitcoin holdings to more than 203 BTC.

Metaplanet’s intention to invest in Bitcoin originates from persistent economic constraints in Japan. These include huge levels of government debt, long periods of negative real interest rates, and a continuously weak yen. The yen has lately achieved its lowest level versus the US dollar since 1986, as well as its weakest level against the euro on record.

At the same time, Nomura’s survey findings suggest that more than 500 investment managers in Japan are actively contemplating investing in cryptocurrency. In addition, half of the respondents are willing to use stablecoins for settlements and daily transactions.

To fund its Bitcoin purchases, Metaplanet recently issued the second tranche of ordinary bonds through EVO FUND, raising more than $6.2 million. These bonds, with an annual interest rate of 0.5%, are scheduled to mature on June 25, 2025. Notably, despite the bonds’ lack of security, Metaplanet has secured them with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, which is controlled by its subsidiary Wen Tokyo Inc.

Metaplanet’s Strategic Bitcoin Acquisition

After the Tokyo Stock Exchange closed on Monday, July 1, Metaplanet reported the purchase of an additional 20.195 BTC for 200 yen (about $1.2 million). This came after a previous purchase of 250 million yen worth of cryptocurrencies in June.

Despite its small size, valued at $97 million, Metaplanet’s action is consistent with a growing tendency among businesses to integrate Bitcoin as a strategic asset in their balance sheets. This trend includes huge corporations such as MicroStrategy, which presently owns 226,331 BTC worth $14.1 billion as of July 2024. Between April and June, the corporation increased its Bitcoin holdings by buying 11,931 BTC for $786 million. 

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