Japanese early-stage investment firm Metaplanet has made another bold move in the cryptocurrency space by acquiring an additional $2 million worth of Bitcoin. This purchase further solidifies the company’s confidence in the digital asset, underscoring its commitment to a Bitcoin-focused investment strategy.
In an announcement on September 10, 2024, Metaplanet revealed that it bought 38.464 BTC, spending approximately 300 million yen ($2 million). This latest acquisition brings the company’s total Bitcoin holdings to 398.832 BTC, valued at an average price of $65,700 per BTC. In total, Metaplanet has invested 3.75 billion yen ($26 million) into Bitcoin.
Bitcoin’s price, which saw a 3.4% increase over the past 24 hours, was trading at $57,159 at the time of the announcement. Market observers are keenly watching the impact of the US Federal Reserve’s anticipated interest rate cuts, with many expecting a liquidity boost to benefit risk-on assets like Bitcoin.
Metaplanet Stock Surge Amid Bitcoin Moves
Metaplanet’s Bitcoin investment has also affected its stock performance. Shares of the Tokyo-listed company surged by 5.87% on September 10, reaching 1101 yen ($7.7). Meanwhile, the broader Nikkei 225 index saw a slight dip of 0.16%, highlighting the contrasting performance between Metaplanet and the wider market.
Additionally, Metaplanet recently announced plans to exercise its 11th series of stock acquisition rights, with proceeds expected to be around 299.7 million yen ($2.10 million). These funds will be directed toward purchasing more Bitcoin, signaling the firm’s continued bullish stance on the cryptocurrency.
A Bitcoin-First Strategy
Metaplanet first declared its intention to adopt Bitcoin as its strategic treasury reserve asset in May 2024, embracing a “Bitcoin-first, Bitcoin-only approach.” This strategy mirrors the one used by US-based MicroStrategy, which is widely recognized for pioneering Bitcoin adoption among publicly traded companies.
Back in July 2024, Metaplanet increased its Bitcoin holdings by 20.195 BTC, acquired for approximately $1.2 million. With this latest purchase, the company’s total BTC holdings are nearing 400 BTC, reinforcing its status as one of Japan’s most aggressive Bitcoin investors.
Following MicroStrategy’s Lead
Metaplanet’s Bitcoin strategy draws parallels with MicroStrategy’s well-known approach. MicroStrategy’s CEO, Michael Saylor, has been a vocal advocate of Bitcoin, personally holding over $1 billion worth of the asset. His company’s Bitcoin holdings stand at an impressive 226,500 BTC, valued at nearly $13 billion.
Saylor has also made bold predictions about Bitcoin’s future, suggesting it could reach $13 million per BTC by 2045. His reasoning is based on the idea that Bitcoin currently represents only 0.1% of global capital, but could see massive appreciation if it grows to 7% of the global financial market.
Challenges Ahead for Bitcoin
While Bitcoin’s long-term outlook remains optimistic for many, there are immediate challenges to consider. All eyes are on the US Federal Reserve, as its upcoming decision on interest rates could have significant implications for Bitcoin’s price. If rates are slashed too aggressively, there are concerns that the cryptocurrency could face downward pressure in the short term.
As Metaplanet continues to increase its Bitcoin holdings, the firm is demonstrating a clear commitment to its belief in the digital asset. Investors and analysts alike will be closely monitoring how both the company and the broader market react to upcoming economic developments.
