Metaplanet Expands Bitcoin Holdings With $10 Million Acquisition

Japanese investment firm Metaplanet has increased its holdings in Bitcoin (BTC) to over 1,000.

This follows a recent purchase of 156.7 BTC for approximately 1.6 billion yen, or about $10.4 million.

Metaplanet shares are up 7.18% after the buy

The acquisition, announced in an X post on Monday, brings Metaplanet’s total Bitcoin reserves to 1,018 BTC, valued at an estimated $68.8 million. From July 1 to September 30, the firm also reported a BTC return of 41.7%, which accelerated to 155.8% between October 1 and 28.

According to data from Arkham Intelligence, Metaplanet’s Bitcoin investment is showing impressive returns, with an unrealized gain of more than $6 million due to the recent rise in the price of the cryptocurrency.

Investors responded positively to the news, with the company’s shares rising 7.18% to ¥1,150. According to data from Google Finance, it marks a 16.04% increase in the last month and a 618.75% year-to-date gain.

The company’s CEO, Simon Gerovich, spoke at the Bitcoin 2024 conference in July, revealing that the decision to invest in the cryptocurrency came at a crucial time. Faced with a difficult balance sheet and significant debt, the company saw Bitcoin as a means to stabilize and improve its financial situation.

He first entered the Bitcoin market in May, driven by the need for a hedge against economic volatility. Inspired by MicroStrategy’s approach, Metaplanet has steadily increased its holdings, making several purchases over the past few months.

Bitcoin buying spree

In June, the group acquired 23,351 BTC for approximately $1.6 million, followed by 42.4 BTC for $2.4 million, bringing their holdings to 203.7 BTC. Subsequent purchases included a purchase of 57,273 BTC for $3.4 million, and another earlier this month where the investment firm added 106,976 BTC worth approximately $6.6 million to the your reservations

To support these acquisitions, Metaplanet has occasionally resorted to using outside finance, including a ¥1 billion loan, which translates to about $6.8 million, from MMXX Ventures, one of its shareholders.

The company has also conducted 11 rounds of share acquisition rights, the last of which concluded on October 23. This offering raised 10 billion yen, with 13,774 shareholders buying shares at a discounted price of 555 yen each.

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