For Metaplanet, the purchases might not just be about increasing its Bitcoin reserves.
Tokyo-listed firm Metaplanet has yet again caught the attention of the crypto community for its continued efforts in the area of Bitcoin BTC $110 135 24h volatility: 2.2% Market cap: $2.19 T Vol. 24h: $42.52 B investments. This follows after it revealed on Tuesday that it has acquired an additional 106 BTC for 1 billion Japanese Yen (approximately $6.68 million).
With its latest acquisition, Metaplanet’s total Bitcoin holdings now stand at over 855 BTC, which is valued at approximately $56 million.
Metaplanet Eyes 1,000 BTC, Plans to Use Bitcoin Acquisition to Increase Revenue
For what it might be worth, Metaplanet has intensified its Bitcoin acquisitions this October. At least, the latest purchase is its fourth so far this month. The company announced its first and second purchases on October 1 and 7, respectively. That is, before revealing its third buy on October 10.
Meanwhile, for Metaplanet, the purchases might not just be about increasing its Bitcoin reserves. Rather, its strategy appears to be more about increasing its yield and driving growth.
According to analysts like Peter Chung, Head of Research at Presto Labs, Metaplanet does not just buy Bitcoin. Its strategy also includes selling put options alongside to generate additional yield.
This explains why, despite the Bitcoin market price sitting at $65,700, Metaplanet has managed to secure its BTC holdings at an average price of $62,200 per coin. Notably, the company’s persistent purchases have brought it very close to its goal of amassing at least 1,000 BTC, which was earlier disclosed by Simon Gerovich, the company’s CEO.
As it stands, the firm is now just 145 BTC away from reaching this milestone.
Meanwhile, Gerovich may have also hinted that Metaplanet has no immediate plans to sell off its Bitcoin holdings. This means that the company is more interested in holding the digital asset for the long term.
Strategy Helps Firm to Drive Market Value
Metaplanet’s aggressive Bitcoin buying has had a noticeable impact on the company. It now ranks as the 17th largest public company holder of Bitcoin, according to data from Bitcoin Treasuries.
If Metaplanet continues its BTC acquisitions, albeit at the current pace it is going, the firm may surpass Hong Kong-based Meitu, which currently holds 940 BTC, before the end of October. In this case, it becomes the largest Bitcoin holder among Asian public companies.
Interestingly, investors appear to be yielding positively to the company’s strategy as well. The latest purchase immediately sparked a 15% jump in the company’s stock, rising from 955 JPY to 1,105 JPY.
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