Metaplanet's Shares Soar Following Latest Bitcoin Purchase of $1.59 Million
Summary:
Metaplanet, often dubbed as "Asia's MicroStrategy," has seen its shares surge after purchasing an additional $1.59 million worth of Bitcoin. This acquisition brings Metaplanet's total Bitcoin holdings to $9.6 million, marking a 4.5% gain on the investment. Their strategy to bolster Bitcoin reserves using various capital market instruments has led to a fivefold surge in stock value since April 2024. Despite significant Bitcoin holdings, Metaplanet still trails behind MicroStrategy and is currently ranked the 30th largest corporate holder of Bitcoin worldwide.
On Tuesday, the value of shares for Metaplanet, often referred to as "Asia's MicroStrategy," spiked dramatically following the company's announcement of an additional Bitcoin acquisition amounting to a million dollars. This marks their third such purchase within a span of seven weeks. The company made it known on June 11th that they acquired an additional 23.25 Bitcoin, the equivalent of nearly $1.59 million. This purchase increases their total Bitcoin holdings to 141.07, valued at $9.6 million. Their average purchase rate stands at $65,365 or 10,278,391 Japanese yen per Bitcoin. Consequently, Metaplanet has seen a profit of around 4.5% relative to the current market price of Bitcoin which stands at $68,313 as per CoinGecko data.
The company's latest Bitcoin investment was welcomed by investors as the stock price for Metaplanet climbed 10.8% to $0.59 or 92 Japanese yen. Although the value later decreased slightly to $0.57 or 89 yen by midday on June 11th on the Tokyo Stock Exchange, the company has witnessed a near fivefold surge in its stock value since unveiling its Bitcoin investment strategy on April 9, 2024.
Metaplanet began its Bitcoin ventures with an initial purchase of 97.85 Bitcoin on April 23 and an additional 19.87 Bitcoin on May 10. Now, the company ranks 30th worldwide among corporate Bitcoin holders. Just like its American counterpart MicroStrategy, Metaplanet mentioned on May 13 that it would utilize a broad assortment of capital market tools to fortify its Bitcoin reserves. The company explained that this approach is a countermeasure against Japan's escalating debt load and the rapid devaluation of the Japanese yen.
Among developed nations, Japan holds the notorious record of boasting a debt-to-GDP ratio of 261%, as pointed out by Metaplanet. The Japanese yen saw a decline of 35% against the US dollar since January 2021, while Bitcoin's value increased almost 200% compared with the yen in the past 12 months.
Despite their assertive strategy, Metaplanet's Bitcoin holdings remain dwarfed by those of Michael Saylor's firm, which possess a total of 214,400 Bitcoin - accounting for about 1.02% of the approximately 21 million Bitcoin that will ever exist. Currently, Metaplanet is only accessible on the Tokyo Stock Exchange, thereby excluding U.S. investors, but endeavours are in place to address this limitation.
Published At
6/11/2024 7:43:03 AM
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