Japanese Investment Firm Metaplanet Purchases Another $2.5 Million of Bitcoin
Metaplanet is a Japan-based investment firm that recently reported investing in digital assets. Metaplanet has added 203.7 Bitcoins at an average price of $62 thousand per unit.
As per the article, the firm made the decision to add more Bitcoin to its balance sheet regardless of the recent price fluctuations.
Metaplanet posted an update on X on 7th July indicating that the firm recently invested a total of 42.5 Bitcoins on their balance sheet. The value of the publicly listed firm’s Bitcoin latest purchase is estimated to be around 400 million Japanese yen or $2.5 million.
Following the completion of the latest Bitcoin installment, Metaplanet has reported an overall Bitcoin reserve of 203.7 Bitcoins with a market valuation of 10 million Japanese yen or $62K per unit.
As per the article, the price of the Bitcoin holdings is estimated to be around 7% higher in comparison to the current spot price of the digital currency at press time. Metaplanet first ventured into the Bitcoin territory in April 2024.
At the time, the firm declares digital assets as treasury assets and confirmed the report about purchasing Bitcoin for $6.5 million.
Metaplanet Adds Bitcoin to Its Balance Sheet
As of 8th April, Metaplanet noticed that the management was swayed to purchase Bitcoin by investment advisors such as Mark Yusko from Morgan Creek Capital. Some of the other financial industry experts that contributed to consolidating the Bitcoin investment are Jack Liu from Ordiswap, UTXO Management, and Sora Ventures.
Metaplanet soon gained the reputation of Asian MicroStrategy. It is important to note that MicroStrategy is a business intelligence and software development firm based out of the United States that has taken a DCA approach to investing in Bitcoin.
The firm’s head Michael Saylor has remained a staunch Bitcoin supporter and started various programs to raise awareness about Bitcoin investment on a corporate level.
The American firm first forayed into Bitcoin starting in 2020. As per the official statement, MS added Bitcoin to their balance sheet as a hedge against inflation and cash alternative. Since that time the firm has continued to amass funding in order to increase its Bitcoin holdings.
As of 24th July, MS holds around 226,331 Bitcoins with an evaluation of $7.5 billion and $35,158 per unit.
Stock Performance of Metaplanet and MicroStrategy
MicroStrategy stock performed considerably well after Bitcoin investments during the period of relative stagnation in the broader stock market. In the same manner, the Bitcoin presence as a treasury asset also made a positive impact on the stock performance of Metaplanet.
As the price of Bitcoin decreased, the stock prices of the investment firm also dipped. In the same manner, after initial Bitcoin purchases, Metaplanet stock gained more than 85% in value.
As of 11th June, Metaplanet stock recorded a high of $0.66 or 107 yen. However, during the digital asset market downturn, the share prices also depleted by 25%. The stock price changes took place when the Bitcoin price shifted from $70 thousand to $60 thousand bracket.
Data projections from TradingView have indicated that Metaplanet stocks are now valued at 80 yen or $0.5.
At the current price evaluation, the price of the investment firm’s stock is still 344% higher on the YTD scale. Since last month, the firm has been working on an investment plan to gather 1 billion yen or $6.26 million by issuing bonds.
MicroStrategy Plans to Buy More Bitcoin
The funds will go towards increasing their Bitcoin investments. Metaplanet is not the only firm doubling down on its Bitcoin investment policy. MicroStrategy has also reported a plan to issue convertible notes to fund their next Bitcoin purchase.
CryptoQuant CEO Ki Young Ju claims that Bitcoin prices are susceptible to various speculation FUDs. He shared his remarks in a post on X noting that the upcoming Mt.Gox Bitcoin sales impact is going to be negligible on Bitcoin in comparison to the rise of Bitcoin market cap during the last 18 months.
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