Metaplanet Follows MicroStrategy's Lead, Purchases $6.5M Worth of Bitcoin as Core Treasury Asset
Summary:
Japanese public company, Metaplanet, has acquired $6.5 million worth of Bitcoin as a central treasury asset. This move, backed by major entities like Sora Ventures and UTXO Management, mirrors the path of American firm MicroStrategy. The decision has significantly boosted Metaplanet's market momentum, with their stock price increasing by 89% post-announcement. Metaplanet's investment is hoped to position them as pioneers in the adoption of digital assets in Japan.
Japan-based public company Metaplanet has recently made a notable investment, acquiring $6.5 million (1 billion yen) worth of Bitcoin (BTC) as a central treasury asset. This move follows the lead of American powerhouse MicroStrategy. Focusing on Web3 and metaverse-related ventures, Metaplanet's decision to invest in Bitcoin is backed by significant entities including Sora Ventures, UTXO Management, and key figures such as Morgan Creek Capital’s founder Mark Yusko, and Ordswap’s founding member Jack Liu.
Sora Ventures' founder Jason Fang stated that Metaplanet is the first Asian equivalent to MicroStrategy. He mentioned that their reliance on BTC will permit Japanese investors to gain access to Bitcoin while avoiding regulatory complications. This move has already led to a steep increase in Metaplanet's market prominence, with an 89% rise in their share price following the announcement.
In their official disclosure, Metaplanet commented on the significance of this investment, adding that it would establish the company as a pioneering adopter of digital assets in their home country, Japan.
MicroStrategy, an enterprise managed by Michael Saylor, sparked the trend of employing Bitcoin as a treasury asset. This US-based public company embarked on the journey of purchasing Bitcoin back in August 2020, back when it was being traded in the $10,000 range. In the course of four years, their holdings have grown to include over 214,246 Bitcoins, each purchased at an average price of $33,706.00 amounting to a total of $6.91 billion. Presently, the company's BTC stock is valued at over $15 billion, having resulted in profits exceeding 100%.
Even when Bitcoin's value was plummeting in the peak bear phase of 2022, Saylor stood his ground, showing no sign of selling. Instead, the company purchased more Bitcoin, asserting its role as a risk-hedging treasury asset while encouraging other businesses to follow suit. Elon Musk —the CEO of Tesla— was reportedly persuaded by Saylor to buy $1.5 billion worth of BTC in January 2021.
Published At
4/9/2024 12:33:46 PM
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