Metaplanet Expands Bitcoin Holdings by $10M

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

This recent purchase of 156.7 BTC is worth about 1.6 billion yen, or about $10.4 million.

Metaplanet shares rose 7.18% following the acquisition.

The acquisition, announced Monday on XPost, brings Metaplanet's total bitcoin holdings to 1,018 BTC, which is roughly $68.8 million. From July 1 to September 30, the company reported a BTC yield of 41.7%, which increased to 155.8% between October 1 and October 28.

According to data from Arkham Intelligence, Metaplanet's bitcoin investment is showing impressive returns, with more than $6 million in profits due to the recent rise in the cryptocurrency's value.

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

Speaking at the Bitcoin 2024 conference in July, the company's CEO, Simon Jirovich, explained that the decision to invest in the cryptocurrency came at a very important time. Facing a challenging balance sheet and high debt, the company looked to Bitcoin to stabilize and improve its financial position.

It entered the bitcoin market in early May, driven by the need to hedge against economic volatility. Driven by a micro-strategy approach, Metaplanet has steadily increased its holdings, making several acquisitions over the past few months.

Bitcoin buying spree

In June, the outfit acquired 23.351 BTC for $1.6 million, then 42.4 BTC for $2.4 million, bringing its holdings to 203.7 BTC. Subsequent purchases included the purchase of 57.273 BTC for $3.4 million, and another earlier this month in which the investment firm added 106.976 BTC for an estimated value of $6.6 million.

To finance these acquisitions, Metaplanet has started to use external financing from time to time, including a 1 billion yen loan from one of its shareholders, MMXX Ventures, which translates to about $6.8 million.

The company has conducted 11 rounds of share buybacks, the last of which was completed on October 23. This offering raised 10 billion yen, with 13,774 shareholders purchasing shares at a price of 555 yen each.