Metaplanet Inc., often referred to as “Japan’s MicroStrategy,” has significantly increased its Bitcoin investments, causing a notable surge in its stock price. On August 20, the company announced a major acquisition of 57.273 BTC, worth approximately 500 million Japanese yen ($3.39 million). This purchase, made at an average price of ¥8,730,117 ($59,317) per Bitcoin, has driven Metaplanet’s stock price up by 13% in a single day.
Strategic Bitcoin Investments and Loan Utilization
Simon Gerovich, CEO of Metaplanet, revealed that the firm’s total Bitcoin holdings have now reached 360.368 BTC. This latest acquisition follows a previous purchase of 57.103 BTC on August 13 for 500 million yen ($3.3 million), at an average price of ¥8,756,107 per Bitcoin. Metaplanet’s aggressive strategy involves using favorable loan conditions, having secured a loan of 1 billion Japanese yen at a remarkably low 0.1% APR.
Metaplanet Inc. Expands Bitcoin Holdings with New 42.47 BTC AcquisitionThis strategy is largely enabled by Japan’s low interest rates, which allow the company to leverage Japanese Yen carry trades. These trades involve borrowing yen at lower rates and investing in high-yield assets like Bitcoin. As a result, Metaplanet has been able to enhance its Bitcoin holdings significantly while minimizing borrowing costs.
Stock Performance and Bitcoin Market Impact
The impact of Metaplanet’s investment strategy on its stock price has been substantial. The company’s shares soared by significantly, reflecting investor confidence in the firm’s expanding Bitcoin portfolio. Year to date, Metaplanet’s stock has surged more than 645%, driven by its consistent and aggressive Bitcoin acquisition strategy. As of the publishing time, the stock is trading at 1,193 yen, having reached an intraday high of 1,295 yen.
Meanwhile, Bitcoin itself has seen a 3.77% increase in the last 24 hours, with its price standing at $60,871.08 at press time. The cryptocurrency’s trading volume over the same period was approximately $29.56 billion, underscoring its robust market activity.
