- Metaplanet boosts its Bitcoin reserves by acquiring 150 BTC during the market correction.
- The company aims to reach 10,000 Bitcoins by 2025, expanding its digital asset portfolio.
- To fund Bitcoin acquisitions, Metaplanet issues ¥2 billion in zero-percent ordinary bonds.
Metaplanet Inc. has been accumulating Bitcoin (BTC) despite its bearish run. The current market capitalization of the company is estimated at ¥175 billion. With its recent purchase of 150 BTC, it added more value to its balance sheet. It is in line with Metaplanet’s Bitcoin treasury policy that has the company’s goal of increasing its reserves in the next several years.
Strategic Investment and Growth
In an X post on Tuesday, CEO, Simon Gerovich revealed that the firm invested about $12.5 million in Bitcoin. This purchase was done at an average of $ 83,508 per BTC. In this acquisition, Metaplanet now owns 3,200 BTC, amounting to 60.8% of the company’s yield this year. This remains to be one of the most definitive strategic investments that the company has made in the long-term vision of Bitcoin.
Metaplanet still has big plans for future expansion. The target that the company set is to attain 10,000 Bitcoins by the end of the year 2025. Metaplanet also aims to increase the current holdings of Bitcoin to double by the end of the next year. For these acquisitions, the company has been relying on both debt and equity financing and operational income.
It is in this context that the company’s approach has been received with a lot of enthusiasm. Metaplanet has over 50,000 shareholders and plans to expand the company’s Bitcoin reserves with support from investors and analysts in the market.
Institutional Demand Boosts Bitcoin Price
To support its Bitcoin purchases, Metaplanet has launched ¥2 billion zero-percent ordinary bonds. This financial decision helps to increase the funds and use them to buy more Bitcoins, thereby enhancing the company’s treasury policy. The aggressive approach to Bitcoin acquisition has placed the company at the forefront of key players in the market of crypto assets.
Related: Strategy Acquires 130 Bitcoin, Now Holds 499,226 BTC: Report
This has been due to an increase in institutional demand for digital currency. More institutions, including nation-states, are using Bitcoin as the mechanism for managing their treasury. The total number of entities that own over 3.1 million BTC has risen to over 170. The increasing demand along with relatively invariable supply implies that the price of BTC is likely to go up in the long run.
