On December 23, the Tokyo-headquartered firm revealed that it had bought 619.7 Bitcoin worth less than $60 million because Bitcoin traded at about $96,000.
A Japanese investment company, Metaplanet, made headlines on December 23 with its largest-ever Bitcoin purchase. The Tokyo-headquartered firm disclosed that it had bought 619.7 Bitcoin for less than $60 million as Bitcoin traded at about $96,000.
The purchase makes Metaplanet the biggest buyer since it bought its first Bitcoins in May. It is almost four times the old record of 159.7 BTC set in October. Metaplanet now holds 1,762 BTC, valued at $168 million and acquired at an average cost of about $75,600 per coin. Known as Asia’s MicroStrategy, the firm is now one of the biggest public firms in terms of its BTC holdings.
Expanding beyond the Bitcoin treasury
The firm's strategy has been very profitable so far. Metaplanet achieved a BTC Yield of 310% between October 1 and December 23, which is an increase of 41.7% from the previous quarter. BTC Yield measures the performance of its Bitcoin acquisition strategy, which is designed to create value for its shareholders.
Metaplanet is planning to expand its role in the management of Bitcoins by including it in its core operations through loans, equity, and convertible bonds. The company will also increase its treasury in Bitcoin. In November, the firm also announced that it was raising $62 million to help it build up its Bitcoins.
The company is also expected to report its first operating profit since 2017, which would be a positive sign of its financial recovery. Following the announcement, Metaplanet shares rose by 5% on the Tokyo Stock Exchange. Its shares were down 13% for the week, but Metaplanet's stock has risen more than 2,100% this year as investors bet on its Bitcoin-centric strategy.
The bold move by Metaplanet also reflects its confidence in Bitcoin and in the increasing corporate adoption of the cryptocurrency. The company's approach in making Bitcoin a primary line of its business could set a trend for other Asian and global firms.
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