TLDR:
- Metaplanet made its largest Bitcoin purchase of 619.7 BTC worth $60 million, bringing its total holdings to 1,762 BTC worth $168 million
- The Japanese firm’s BTC return rose to 310% in Q4 2023 from 41.7% in Q3
- The company’s shares rose more than 2,100% in 2023, reaching an all-time high of ¥4,080 on December 17.
- Metaplanet rebrands itself as Bitcoin Treasury and raises $62 million in bonds to buy Bitcoin
- The average purchase price for all bitcoin holdings is $75,600 per BTC
Japanese investment company Metaplanet he bought 619.7 Bitcoin worth about $60 million, his largest cryptocurrency purchase since the launch of his Bitcoin strategy in May 2023. The purchase was made on December 23, 2024, with bitcoin trading at around $96,000.
The Tokyo-based firm has earned the nickname “Asian microstrategy” for its steady accumulation of bitcoins, similar to the American firm known for its large cryptocurrency holdings. With this latest purchase, Metaplanet’s total bitcoin holdings stood at 1,762 BTC, which is valued at approximately $168 million.
The company’s average purchase price across all bitcoin acquisitions is $75,600 per BTC, allowing the company to make significant profits at current market prices. Metaplanet’s Bitcoin fund is now ranked 12th among public companies, placing it behind medical technology maker Semler Scientific.
*Metaplanet buys additional 619.70 BTC* pic.twitter.com/5npflMJ3kW
— Metaplanet Inc. (@Metaplanet_JP) December 23, 2024
Metaplanet reported a notable increase in its BTC yield, reaching 310% between October 1st and December 23rd. This represents a significant improvement on the previous quarter’s return of 41.7% between July and September.
The company uses BTC Yield as a measure to evaluate the effectiveness of its Bitcoin mining strategy. This metric helps determine whether the approach is creating shareholder value, according to the company’s statements.
The investment firm’s commitment to Bitcoin goes beyond simple treasury management. In a disclosure to investors, Metaplanet announced plans to establish “Bitcoin Accumulation and Management” as a formal business line, involving various financial instruments such as loans, equity and convertible bonds.
To fund its bitcoin purchases, Metaplanet recently raised more than $62 million (¥9.5 billion) through a stock acquisition program. The company used the entire amount from the two bond issues to acquire Bitcoin, demonstrating its commitment to its cryptocurrency strategy.
CEO Simon Gerovich explained the company’s motivation, stating,
“In this way, we protect our capital against the falling yen and are prepared for the future.”
The strategy seems to be resonating with investors, as Metaplanet’s share price has seen a remarkable rise.
The company’s shares rose more than 2,100% in 2023, hitting an all-time high of 4,080 Japanese yen ($26) on December 17. However, following the latest bitcoin buying announcement, the stock showed a mixed performance, initially rising 5% but remaining down about 13% over the past week.
Metaplanet is planning its first operating profit since 2017, marking a turning point in the company’s financial performance. This improvement coincides with the adoption of a Bitcoin-centric strategy.
The broader context of the cryptocurrency market shows that Bitcoin is trading at $95,500, with a market cap of under $1.9 trillion. Daily trading volume fell 4.18% to below $50 billion, while long liquidations reached $40 million in the last 24 hours.
Market data shows that Bitcoin recently hit an all-time high of $108,000, contributing to Metaplanet’s strong quarterly returns. Cryptocurrency price movements have affected investment timing and company strategy.
Metaplanet’s approach reflects the growing trend of enterprise bitcoin adoption. In comparison, El Salvador recently added 29 BTC to its holdings, bringing the total to 5,995 BTC, which is valued at $562 million.
The company’s stock is currently trading at ¥3,410, a correction from a recent peak of ¥4,250, reflecting broader market movements and investor sentiment.
