35.55 F
London
November 21, 2024
PI Global Investments
Bitcoin

Metaplanet Scoops Another $6.5 Million in Bitcoin, Doubling Down on Its October Spree


Metaplanet Inc., the Tokyo-listed firm known for its aggressive foray into Bitcoin (BTC), announced on Friday that it had acquired an additional 108.999 Bitcoin for ¥1 billion (US$6.5 million). 

Its latest purchase brings the company’s total Bitcoin holdings to 748.502 BTC, reinforcing its long-term bet on the leading crypto. Yet, Metaplanet’s Bitcoin acquisition strategy goes beyond simple spot purchases.

The company employs a sophisticated approach by selling put options alongside its Bitcoin purchases to generate additional yield, Peter Chung, Head of Research at Presto Labs, told Decrypt.

 “Metaplanet’s strategy allows them to bottom-fish in case the BTC price declines, a level of sophistication not commonly seen among other companies,” Chung said.

Friday’s acquisition follows earlier purchases this month, bringing its total Bitcoin investment to ¥6.9 billion (US$46.8 million). The company has now accumulated 748.502 BTC, equating to around $45.2 million based on Bitcoin’s value of $60,420.

“Metaplanet is now one of the three Asia-based public companies buying Bitcoin for their treasury, along with Nexon and Meitu,” Chung added. 

He also noted that the company is capitalizing on the recent strength of the Japanese yen against the U.S. dollar. Metaplanet first began its Bitcoin buying spree in April 2024

Leadership at the 13-year-old firm positioned Bitcoin investment as “the most valuable thing we can do for our shareholders,” a move that initially boosted its stock price from ¥190 (US$1.32) to a peak of ¥1,008 (US$7.01). Its stock has since cooled to $6.40, data shows.

Asia’s answer to MicroStrategy

The firm’s Bitcoin strategy mirrors that of MicroStrategy, a U.S.-based software firm known for its vast cryptocurrency holdings.

Like Metaplanet, MicroStrategy has adopted Bitcoin as a core asset in its treasury. Metaplanet initially branded itself as “Asia’s answer to MicroStrategy” when it unveiled its Bitcoin treasury strategy.

The firm’s Bitcoin purchases are also part of a larger movement among companies incorporating crypto assets into their long-term investment plans. Notably, Tesla made waves in 2021 with a $1.5 billion USD Bitcoin investment, though it later sold some of its holdings to diversify. 

Similarly, Square, now Block Inc., has made Bitcoin a key part of its strategy, investing $50 million USD in 2020 and an additional $170 million USD in 2021.

Edited by Sebastian Sinclair

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



Source link

Related posts

Could Bitcoin’s Recent Surge Frighten the Fed?

D.William

TON Outperforms Bitcoin by 118% in 2024, Setting Itself Apart from Other Layer 1s

D.William

Biggest Bitcoin Bull: MicroStrategy’s Key to Success

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.