TLDR
- Metaplanet, a Japanese public company, bought ¥500 million (about $3.3 million) worth of Bitcoin
- This purchase brings Metaplanet’s total Bitcoin holdings to around 303 BTC, valued at nearly $18 million
- Metaplanet secured a ¥1 billion loan dedicated to purchasing Bitcoin
- The company plans to raise about $70 million through a stock rights offering, with $58 million for further Bitcoin investments
- Other institutional investors like Marathon Digital Holdings and MicroStrategy are also accumulating Bitcoin
Metaplanet Inc., a publicly traded company based in Japan, has made another significant investment in Bitcoin. The company purchased ¥500 million (approximately $3.3 million) worth of Bitcoin, adding 57.103 BTC to its holdings. This move brings Metaplanet’s total Bitcoin ownership to about 303 BTC, valued at nearly ¥3 billion or $18 million.
Simon Gerovich, CEO of Metaplanet, announced the purchase on social media platform X. He noted that this acquisition aligns with the company’s recent ¥1 billion loan, which was specifically obtained for buying Bitcoin.
The loan, announced on August 8, 2024, demonstrates Metaplanet’s commitment to increasing its Bitcoin reserves.
Metaplanet isn’t stopping there. The company has revealed plans to raise about $70 million through a stock rights offering.
Of this amount, approximately $58 million is earmarked for further Bitcoin investments. This strategy shows Metaplanet’s long-term belief in Bitcoin as a valuable asset.
Always be stacking #Bitcoin @Metaplanet_JP pic.twitter.com/c34goVoLa8
— Simon Gerovich (@gerovich) August 13, 2024
The company’s approach to Bitcoin is similar to that of MicroStrategy, a U.S. software firm known for its large Bitcoin investments.
Like MicroStrategy, Metaplanet views Bitcoin as a strategic long-term investment. It also sees Bitcoin as a way to protect against the weakening Japanese yen and Japan’s high government debt.
Metaplanet’s investment comes at a time when Bitcoin’s price has been fluctuating. Despite this market uncertainty, the company continues to buy Bitcoin. This shows their confidence in the cryptocurrency’s future value.
Other companies are also investing in Bitcoin. Marathon Digital Holdings Inc., a U.S. company, plans to offer $250 million in senior convertible notes to buy more Bitcoin.
MicroStrategy and Tesla have also held onto their Bitcoin throughout recent market downturns.
Institutional interest in Bitcoin extends beyond individual company purchases. U.S. spot Bitcoin ETF issuers saw a net cash inflow of about $28 million on August 12, 2024.
On-chain data suggests that institutional investors have received more than $1.3 billion in Tether (USDT) since August 5, indicating increased buying power.
The current Bitcoin market shows mixed signals. The price is consolidating in an inverted triangle pattern, without a clear direction.
However, some technical indicators suggest that buyers might be gaining control. The Bitcoin price recently bounced off its 200-week Moving Average, and the Relative Strength Index (RSI) is trying to move above the 50% level.
Metaplanet’s strategy aims to provide Japanese investors with exposure to Bitcoin while taking advantage of favorable tax treatment. The company sees Bitcoin as a way to diversify its treasury and hedge against economic uncertainties.