Japanese investment firm Metaplanet has continued its aggressive Bitcoin acquisition strategy, boosting its holdings to nearly 400 Bitcoin. This latest purchase sparked a 5.9% increase in its share price on the Tokyo Stock Exchange.
On Sept. 10, the company announced that it had acquired an additional 38.46 Bitcoin for approximately $2.1 million (300 million Japanese yen). This purchase brings Metaplanet’s total holdings to 398.8 Bitcoin, currently valued at around $23 million.
Significant Growth Despite Losses
Since the company first revealed its Bitcoin-focused investment strategy in April, Metaplanet’s stock has skyrocketed by 480%, according to MarketWatch. However, the firm is down 13.3% on its total Bitcoin investment, with the cryptocurrency trading at $57,520 at the time of the announcement.
Despite the investment losses, Metaplanet’s share price has surged as it continues to build its Bitcoin reserves, now placing it among the top 30 corporate Bitcoin holders globally. In Asia, Metaplanet ranks third in terms of Bitcoin reserves.
Bitcoin as a Hedge Against Economic Instability
Metaplanet’s CEO, Simon Gerovich, has been vocal about the company’s motivation behind its Bitcoin strategy. At the Bitcoin Conference in July, Gerovich cited Japan’s increasing debt and the weakening yen as major reasons for adopting Bitcoin as a hedge. He described Bitcoin as the “apex monetary asset” and emphasized the firm’s commitment to accumulating as much of it as possible.
In a May announcement, the company shared plans to use a variety of capital market instruments to grow its Bitcoin holdings, following a similar approach to MicroStrategy, led by Bitcoin advocate Michael Saylor. Metaplanet made good on this strategy in August when it secured a $6.8 million loan to further increase its Bitcoin reserves.
Gerovich acknowledged that Metaplanet had been struggling financially before its Bitcoin investments, referring to the company as a “zombie” before the pivot. He credited MicroStrategy’s success as inspiration for Metaplanet’s Bitcoin-centric approach, which has since transformed its financial outlook.
