Metaplanet Buys 463 BTC, Now Holds 17,595 BTC Worth $1.78B

Japanese firm Metaplanet has recently executed another substantial Bitcoin purchase, signaling robust institutional confidence in the cryptocurrency’s long-term value proposition.

This acquisition occurs as the crypto market demonstrates signs of recovery from recent price declines, further highlighting Metaplanet’s conviction in its digital asset strategy. Metaplanet’s latest investment involved the acquisition of 463 Bitcoin at an average price of approximately $115,895 per coin, amounting to a total investment of $53.7 million.

However, this strategic move elevates the company’s total Bitcoin holdings to an impressive 17,595 BTC, currently valued at approximately $1.78 billion. The company’s year-to-date Bitcoin yield of 459.2% serves as a testament to the effectiveness of its treasury strategy.

Metaplanet Continues Its Buying Spree.

This recent purchase follows closely on the heels of Metaplanet’s acquisition of 780 BTC, valued at approximately $92.5 million just a week prior. These consistent acquisitions solidify Metaplanet’s position as one of Asia’s largest public Bitcoin holders, posing a notable challenge to industry giants such as MicroStrategy, led by Michael Saylor.

MicroStrategy, a prominent advocate for Bitcoin adoption, recently expanded its own substantial Bitcoin treasury by acquiring an additional 21,021 BTC for $2.46 billion. This purchase increased MicroStrategy’s total holdings to an industry-leading 628,791 BTC, acquired at an average cost of approximately $73,227 per Bitcoin.

Adding to the intrigue, Metaplanet is seeking to raise a substantial $3.7 billion through the issuance of perpetual preferred shares. This proposal has ignited speculation among investors regarding the potential for even larger Bitcoin acquisitions in the foreseeable future. The matter is scheduled for discussion at an upcoming Extraordinary General Meeting (EGM).

Despite Metaplanet’s aggressive Bitcoin acquisition strategy, the company’s stock price experienced a slight downturn. According to data from Yahoo Finance, the stock price decreased by approximately 6% to ¥998 in early Monday morning trading.

Federal Rate Cut Expectations

The broader cryptocurrency market has exhibited renewed momentum, rebounding from recent lows. Bitcoin’s price has recovered by nearly 1%, hovering around $114,594 after briefly dipping to a weekend low of approximately $111,800.

Furthermore, increasing expectations of a Federal Reserve rate cut by September has bolstered market sentiment, with pricing in an 89.1% probability of a 0.25% reduction. Analysts suggest that this potential rate cut could enhance Bitcoin’s appeal as a hedge against a weakening US dollar.

Metaplanet, currently holding 17,595 BTC, remains steadfast in its commitment to its Bitcoin-first strategy. Should the proposed $3.7 billion funding round be approved, it could pave the way for one of the most significant single acquisitions of Bitcoin in corporate history.