Japanese investment firm Metaplanet Inc. has made a significant move by purchasing 107.913 Bitcoin ($BTC), worth approximately 1 billion yen ($6.9 million). This recent acquisition comes as Bitcoin’s price saw a nearly 10% rise in September.
With this purchase, Metaplanet continues to position itself alongside other major players in the cryptocurrency space, such as MicroStrategy and Marathon Digital, who have also made large investments in Bitcoin.
The move highlights the firm’s growing confidence in Bitcoin as a long-term asset and its role as a strategic reserve.
Metaplanet’s total Bitcoin holdings now stand at 506.745 $BTC, currently worth around $32.2 million. According to the firm’s latest filings, they bought the recent batch of Bitcoin at an average price of 9.26 million yen ($64,168) per $BTC.
Since earlier this year, Metaplanet has been steadily adding to its Bitcoin reserves, showing that it believes in Bitcoin’s long-term potential, regardless of short-term market conditions.
Overall, Metaplanet has now invested 4.75 billion yen in Bitcoin. The company’s average cost for buying Bitcoin is around 9.37 million yen ($64,931) per $BTC. Despite price fluctuations in the market, the firm’s consistent purchases of Bitcoin reflect its strong belief in the digital asset’s future value.
A representative of Metaplanet explained, “Our continued investments in Bitcoin show our confidence in its role as a reliable store of value, especially in these uncertain economic times”.
Partnership with SBI Group
In early September, Metaplanet took another step by partnering with SBI Group, a major financial services company in Japan that has a cryptocurrency investment arm.
The goal of this partnership is to improve Metaplanet’s ability to trade and safely store its growing Bitcoin holdings. By working together, the two companies aim to offer better security and tax benefits for managing Bitcoin.
This partnership is particularly important given Japan’s increasingly strict regulations surrounding cryptocurrency. Collaborating with SBI Group allows Metaplanet to ensure that it operates within the country’s legal framework while still expanding its Bitcoin portfolio.
The firm hopes to improve its efficiency in managing Bitcoin by ensuring compliance with regulatory standards and reducing any risks tied to security.
Metaplanet’s decision to invest further in Bitcoin had a direct impact on its stock. After the news of the purchase, the company’s stock price rose by over 4%, reaching 1,049 yen. However, the stock later settled at an average price of 1,008 yen.
Meanwhile, Bitcoin itself experienced a slight price drop, trading at $63,974. However, its 24-hour trading volume jumped by around 69% to $35.4 billion.
Despite short-term price fluctuations, Bitcoin is still up by 51% since the start of the year.
Hedge against economic uncertainty
Metaplanet’s approach to Bitcoin mirrors that of US company MicroStrategy, which has been buying Bitcoin for over four years. Both companies see Bitcoin as a safe way to protect their assets in times of economic instability.
In Metaplanet’s case, this strategy is especially important due to Japan’s ongoing economic struggles, including rising inflation and changes in monetary policy.
Back in August, Metaplanet took out a 1 billion yen ($6.8 million) loan from MMXX Ventures, one of its shareholders, to buy more Bitcoin. The loan has a very low interest rate of 0.1% per year and is set to be repaid in six months.
This loan is another sign that the company is dedicated to increasing its Bitcoin holdings and using it as a hedge against the weakening yen.
Earlier this year, Metaplanet officially adopted Bitcoin as a reserve asset, following a similar approach taken by MicroStrategy. This means the company sees Bitcoin as a way to protect its investments against the volatility of traditional currencies like the yen.
“We believe Bitcoin offers a unique opportunity for domestic investors to gain exposure to an asset with significant long-term potential”, the firm stated.
Since first announcing its Bitcoin strategy in April, Metaplanet has not missed a single month in adding to its Bitcoin reserves, even when market conditions were less favourable.
The firm’s commitment to Bitcoin, regardless of its price fluctuations, shows that it views the cryptocurrency as more than just a short-term investment. Instead, Metaplanet sees Bitcoin as a store of value that can help protect against future economic challenges.
