Metaplanet has purchased over 300 Bitcoin this month alone, reinforcing its commitment to adopting the crypto asset as a corporate reserve asset.
Metaplanet, a publicly listed financial services company in Japan, has continued its aggressive venture into the cryptocurrency market with its third substantial Bitcoin BTC $94 036 24h volatility: 1.4% Market cap: $1.87 T Vol. 24h: $28.87 B acquisition this month. The firm increased its Bitcoin holdings by 108.999 BTC, raising its total reserves to approximately 748.502 BTC.
On October 11, Metaplanet revealed that it had invested around ¥1 billion (roughly $6.5 million) in the latest purchase. The acquisition was made at an average price of ¥9,174,396 per BTC, equivalent to about $60,000 per Bitcoin at current market rates.
Metaplanet Adopts Bitcoin
The month began with Metaplanet acquiring 107.913 BTC, worth approximately ¥1 billion ($6.9 million), on October 1. Since then, the company has maintained its Bitcoin buying spree, adding another batch of the crypto asset last week. So far, the firm has acquired more than 300 Bitcoin this month alone.
This steady accumulation is part of the company’s broader strategy to bolster its BTC reserves as a key asset in its treasury.
Metaplanet’s recent activity aligns with the broader trend of corporations diversifying their reserves by acquiring BTC. These companies are attracted by Bitcoin’s potential as a hedge against inflation and economic instability. Other Asian firms such as Nexon and Meitu have also embraced the crypto asset.
A Unique Strategy in Play
Unlike other companies, Metaplanet has implemented a different investment approach by utilizing put options in its Bitcoin strategy. Put options are a type of financial derivative that provides the buyer with the right, but not the obligation, to sell an asset at a predetermined price (called the strike price) within a certain period.
On October 3, the Japanese firm revealed that it had sold 223 Bitcoin put option contracts, each with a strike price of $62,000, which are set to expire on December 27. This transaction enabled Metaplanet to secure an additional 23.97 BTC, valued at around $1.46 million at the time, boosting its overall Bitcoin holdings.
Metaplanet CEO Simon Gerovich explained that this strategy helps the company expand its Bitcoin reserves without increasing financial risk. He explained that the firm’s goal is to use options strategies on a portion of its assets to generate returns.
Asia’s MicroStrategy
Metaplanet started its Bitcoin journey in May 2024 when it announced that it had adopted the king coin as its treasury reserve, following in the footsteps of MicroStrategy, an American-based business intelligence firm.
The move earned the company the title of “Asian’s MicroStrategy” as Metaplanet is the first in the region to adopt Bitcoin as a hedge against the falling Japanese yen.
Since then, the company’s stock listed on the Tokyo exchange has turned around, gaining approximately 500% year to date, according to Google Finance data. The stock gained around 5% within the past 24 hours.
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