Japanese early-stage investment company Metaplanet made headlines today by purchasing an additional $2 million worth of Bitcoin, bolstering its confidence in the leading digital asset. On September 10, 2024, Metaplanet announced it had increased its cryptocurrency holdings by 38.464 BTC, acquired for approximately 300 million yen ($2 million). This latest acquisition brings Metaplanet’s total Bitcoin holdings to 398.832 BTC, with an aggregate cost of 3.75 billion yen ($26 million), averaging slightly above $65,700 per BTC.
In a notable development, Bitcoin’s price has risen by 3.4% in the past 24 hours, trading at $57,159 at press time. The US Federal Reserve is anticipated to begin its rate-cut cycle next week, which many believe could positively impact risk-on assets such as Bitcoin.
Data from Google Finance indicates that Metaplanet’s stock, listed on the Tokyo Stock Exchange, was trading at 1101 yen ($7.7), a 5.87% increase in today’s session. Meanwhile, the Nikkei 225 index saw a minor dip of 0.16%.
Metaplanet also disclosed plans to exercise the 11th series of stock acquisition rights, projecting total proceeds of around 299.7 million yen ($2.10 million), which will be invested in purchasing more Bitcoin. Followers of the crypto industry may recall that in May 2024, Metaplanet declared its intention to adopt Bitcoin as its strategic treasury reserve asset, similar to the strategy employed by MicroStrategy. The company first adopted a “Bitcoin-first, Bitcoin-only approach,” reflecting its commitment to the digital asset.
In July 2024, Metaplanet increased its Bitcoin holdings by 20.195 BTC, which cost around $1.2 million at that time. This purchase has contributed to the firm’s growing stash of nearly 400 BTC over the past few months.
Metaplanet’s strategy isn’t unprecedented among publicly listed companies. MicroStrategy, a US-based firm, has been a notable advocate for Bitcoin. On August 8, 2024, MicroStrategy’s Michael Saylor revealed personal Bitcoin holdings exceeding $1 billion, with no intention of selling. This is separate from MicroStrategy’s own Bitcoin reserves of 226,500 BTC, valued at nearly $13 billion. Saylor has even projected that Bitcoin’s price could hit $13 million per BTC by 2045, suggesting that as Bitcoin’s share of global capital increases from 0.1% to 7%, its value could skyrocket.
However, while such ambitious forecasts provide an optimistic outlook, immediate challenges remain. The upcoming actions of the US Federal Reserve will be closely watched, as there’s concern that aggressive rate cuts could negatively impact Bitcoin prices.
