Metaplanet Increases Bitcoin Holdings With Additional 2,205 BTC Purchase
Metaplanet, a Japan-based company, has been aggressively accumulating Bitcoin as part of its treasury strategy, recently acquiring 2,205 BTC at an average price of $103,873 per coin. This brings its total holdings to 15,555 BTC, valued at over $800 million.
Metaplanet, a Japan-based company, has been intentional and aggressive in accumulating Bitcoin as part of its treasury strategy. It recently acquired an extra 2,205 BTC. Its current purchase has brought its holdings to a total of 15,555 BTC as disclosed on Monday.
The company made the recent purchase at an average price of $103,873 per coin, resulting in a total investment of approximately $213 million. Its goal is to accumulate 10,000 BTC by the end of 2025.
Metaplanet utilizes a custom metric, known as Bitcoin Yield, to track the value of its shareholders in relation to dilution.
It has announced a Bitcoin Yield of 95.6% for the quarter ending June 30. A 309.8% yield followed this in the previous quarter. The Bitcoin Yield represents the change in the percentage of Bitcoin holdings per fully diluted share, excluding the impact of accretive treasury actions.
Additionally, Metaplanet tracks the Bitcoin Gain and Bitcoin Yen Gain, which convert the yield into hypothetical Bitcoin increases and yen-denominated performance. This will help investors gain a clearer understanding of the overall strategy.
The company funds its Bitcoin acquisitions through bond issuances, having recently completed its 15th ordinary bond sale valued at $15 million.
It is worth noting that Metaplanet’s Bitcoin accumulation strategy has been successful to date, with the company’s holdings valued at over $800 million.
Growing Concerns Over Metaplanet
There is a growing skepticism surrounding the long-term viability of Bitcoin treasury strategies, with concerns that the market may be reaching saturation. Glassnode lead analyst James Check believes that the strategy’s lifespan might be shorter than expected, especially for new entrants. Check argues that early adopters, such as MicroStrategy, have built strong reputations and balance sheets, while latecomers lack clear differentiation.
Matthew Sigel of VanEck highlights the risks associated with at-the-market share issuance programs, which can become dilutive if a company’s stock price approaches its Bitcoin net asset value.
Udi Wizardheimer, on the other hand, suggests that many newcomers to Taproot Wizards are chasing easy money without understanding the long-term implications of holding Bitcoin.
