Metaplanet Inc. Doubles Down on Bitcoin, Purchasing 150 BTC for $12.5M

Metaplanet Inc. is doubling down on Bitcoin, purchasing another 150 BTC for $12.5 million at an average price of $83508. The new purchase brings its holdings to 3200 BTC

Metaplanet Inc. (TYO:3853), a Japanese Web3 company, has reportedly purchased another 150 Bitcoin (BTC) for $12.5 million. The latest purchase was made at an average price of $83,508, according to a statement released on Friday.

Following this purchase, Metaplanet’s Bitcoin holdings have risen to 3,200 BTC, a move that is part of its goal to hold 10,000 BTC in its treasury by the year’s end. The company first announced its plans for a 10,000 BTC treasury back in April.

Despite market volatility, CEO Simon Gerovich remains optimistic, reaffirming the company’s commitment to Bitcoin as a treasury cornerstone.

“We are committed to building a sustainable and decentralized future with Web3 technologies,” said Gerovich. “Bitcoin is a key part of that future, and we are proud to be adding to our Bitcoin holdings.”

Institutions Are Aggressively Adding Bitcoin to Their Treasuries

The company’s aggressive accumulation strategy is consistent with that of MicroStrategy (NASDAQ:MSTR), which recently purchased 130 BTC to add to its massive Bitcoin reserves, now at 499,226 BTC. As institutions increasingly add Bitcoin to their corporate treasuries, Metaplanet is mimicking the same move.

Earlier this week, MicroStrategy announced a new tranche of convertible bonds, part of its ongoing strategy to fund further Bitcoin purchases.

“We continue to believe that bitcoin is a valuable addition to any institution’s treasury,” said Saylor, in a statement. “We are grateful to the investors who have participated in our convertible bond offering, which will allow us to continue to build our bitcoin treasury.”

Earlier this year, MicroStrategy sold a portion of its BTC holdings to realize some gains after a period of significant losses due to the cryptocurrency bear market.

However, the company’s stock price has since recovered, and it is now trading at a price that is no longer in a loss-making territory.

Metaplanet Accelerates Bitcoin Accumulation With Debt Financing

To finance its expansion, Metaplanet sold Evo Fund ¥2 billion ($13 million) zero-interest bonds, replicating MicroStrategy’s move of using debt to accumulate more Bitcoin.

The bonds carry no interest and will be repaid in principal at maturity. With the bonds, Metaplanet can borrow money without any interest obligations, allowing it to make large-sized purchases during market downturns.

Moreover, the company’s shareholder base has expanded to more than 50,000, with strong institutional backing, including from Strategy.

Contrary to MicroStrategy’s earlier high-price Bitcoin buys that resulted in unrealized losses, Metaplanet appears to be playing the game differently by strategically buying on dips in the market, an approach that has benefitted the company.

The wider crypto market is still in a correcting mode, with Bitcoin ETFs seeing $5 billion of outflows over the last few weeks.

Meanwhile, institutional buying remains strong, with over 170 institutions now holding over 3.1 million BTC. Sentiment is mixed, with some predicting further corrections due to the current fear conditions.