Asia’s MicroStrategy, Metaplanet, made the right bet in Bitcoin as its gains have topped $28 million.
Popularly referred to as Asian MicroStrategy, Metaplanet has announced a $28 million surge in its Bitcoin BTC $114 363 24h volatility: 0.8% Market cap: $2.28 T Vol. 24h: $92.06 B holding. According to the announcement, this has caused the company’s market valuation to double from its level at the beginning of this year.
Asian MicroStrategy with Multiple Bitcoin Purchases
Metaplanet launched its Bitcoin accumulation strategy in mid-May this year, focusing on adopting the coin as its primary treasury asset. The company set an initial BTC investment goal of 1 billion yen, equivalent to $6.8 million. The firm then secured a 1 billion yen loan to fund its Bitcoin acquisition strategy.
It is worth noting that Japan, its home country, faced several economic challenges at the time, including the devaluation of Yen. The financial leader noted that its Bitcoin investment strategy was a “direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen.”
From small bits of 117.7 BTC, which translated to roughly $7.2 million at the time, Metaplanet gradually grew its Bitcoin holding. Like Semler Scientific, the Japanese firm borrowed a leaf from MicroStrategy’s playbook to actualize this move.
Towards the end of August, the company’s total Bitcoin holdings reached 360.368 BTC after purchasing 57.273 more BTC. This purchase, which cost an additional 500 million yen or $3.4 million, brought Metaplanet to successfully actualize the investment target for which it secured a loan. In a matter of two months, the firm more than doubled its holdings.
After purchasing 156 BTC valued at $1.6 billion Japanese Yen in October, Metaplanet became the biggest corporate holder of Bitcoin in Asia. At this time, it already boasts up to 1,000 BTC. According to its Q3 financial report, it increased its Bitcoin holding from 492.82 BTC to 1,018.17 BTC by mid-November. The firm’s cumulative holdings is now worth $64 million.
Metaplanet Enjoys Benefit of Its Bitcoin Accumulation Strategy
All of these Bitcoin acquisitions have proven favorable for the firm, especially with Bitcoin currently hitting new levels. The flagship cryptocurrency is currently trading at $87,511.92. In this year alone, the coin has gone up by more than 105%, and so has Metaplanet’s stock.
Metaplanet CEO Simon Gerovich confirmed that the company’s stock registered a 500% increase in six months. He also acknowledged that the company’s valuation gain on its Bitcoin holdings is JPY 4.27 billion, which is equivalent to $28 million. From this, it does not look like the Tokyo-based firm will back down on its Bitcoin accumulation strategy.
“We intend to continue increasing our Bitcoin holdings through capital market activities and operational income as deemed appropriate,” the company wrote in its report.
In addition, Metaplanet still generates yield by selling out-of-the-money Bitcoin options, which provides it with more opportunities to enhance its return strategy. In its Q3 Financial data, it reported a BTC yield of a staggering 155% for the last quarter.
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