Metaplanet Makes Biggest BTC Buy Yet Despite Bitcoin Price Correction

After a 9.8% drop in Bitcoin’s value over the past week, investors are showing signs of caution, worried about the potential for further declines. Despite this, Japan-based Metaplanet has reaffirmed its confidence by buying almost 620 BTC.

Interestingly, the latest acquisition marks its largest Bitcoin purchase to date.

Metaplanet’s largest single BTC acquisition

According to the company’s official press release, the acquisition, made as part of its Bitcoin Treasury operations, involved the purchase of 619.7 BTC, worth about $60.6 million. This latest transaction brings Metaplanet’s total Bitcoin holdings to 1,761.98 BTC, which is valued at nearly $168 million.

Over the past six months, Metaplanet has leveraged multiple capital market activities, including equity rights issues and zero-coupon bonds, to fund its Bitcoin purchases.

Most recently, the company raised ¥5 billion, valued at $31.9 million, through its fifth series of ordinary bonds on December 20, 2024. Before that, the investment firm based in Tokyo also announced ¥4.5 billion, valued at $28.7 million. , issue of bonds due on June 16, 2025.

The company reported a staggering BTC return of nearly 310% between October 1 and December 23, 2024, demonstrating the significant growth of Bitcoin holdings relative to its shares outstanding fully diluted. Metaplanet appears to have firmly positioned itself as a key player in a corporate investment in Bitcoin, although the broader market sentiment remains bearish.

Bitcoin Boost

Metaplanet, often referred to as “Asia’s MicroStrategy,” began accumulating BTC in May, mirroring the US-based firm’s Bitcoin-centric strategy. The company recently revealed that it expects its first operating profit in seven years, thanks to its decision in April to use Bitcoin as a treasury asset.

For fiscal 2024, it expects revenue to rise to 890 million yen, worth about $5.8 million, from 261 million yen, and expects an operating profit of 270 million yen. This was a major turnaround after years of losses. A key factor has been its innovative use of Bitcoin put options, which brought in ¥520 million. The firm also benefited from strong performance at its Royal Oak Hotel in Tokyo.

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