Metaplanet Stock Soars 10% After Big Bitcoin Buy

Tokyo-listed investment firm Metaplanet Inc. saw its shares increase by 9.88% on Tuesday. This surge followed the announcement that it had purchased an additional 250 million yen ($1.58 million) worth of Bitcoin. Investors reacted positively to the news, showing confidence in the firm's strategic direction.

On June 11, Metaplanet released a statement detailing that it had acquired 23.351 BTC. This latest purchase brings its total Bitcoin holdings to over 141.07 BTC, valued at $9.54 million. The acquisition follows earlier purchases made on April 23 and May 10, signaling the firm’s ongoing commitment to increasing its Bitcoin assets.

The average purchase price for Bitcoin by Metaplanet was 10.27 million yen, or approximately $65,300 per Bitcoin. Currently, Bitcoin is trading at $67,566, which is down from last week’s peak of nearly $72,000. This price fluctuation did not deter Metaplanet’s investment strategy.

Metaplanet Inc.'s stock rose to 89 yen per share at closing on Tuesday. This represents a significant increase from its price of around 19 yen on April 9, the date when the company first announced its focus on Bitcoin investments. The stock's rise reflects market approval of Metaplanet’s strategic pivot.

“In response to the pandemic-induced investment landscape, Metaplanet comprehensively restructured its myriad assets and businesses, paving the way for a strategic pivot towards a Bitcoin-centric vision,” the company’s website said. 

This shift is part of the company’s broader strategy to adapt to changing economic conditions.

Last month, Metaplanet declared that it had decided to adopt Bitcoin as its strategic treasury reserve asset. This decision was influenced by Japan's ongoing economic challenges, including high government debt, prolonged periods of negative real interest rates, and a weak yen. The firm believes that Bitcoin can provide a more stable and profitable reserve compared to traditional assets.

According to BitcoinTreasuries.net, public companies around the world collectively own a total of 308,688 Bitcoins. Microstrategy Inc. leads the pack with 214,400 BTC, which represents over 50% of its market capitalization. This trend of accumulating Bitcoin as a reserve asset indicates growing corporate confidence in the cryptocurrency’s potential for long-term value preservation.