Metaplanet shares jump 10% after Bitcoin investment
Date: 2024-06-11 Author: Oliver Abernathy Categories: BUSINESS
On June 11, 2024, the Japanese investment company Metaplanet announced a significant investment in Bitcoin, which led to a sharp increase in its shares.
Metaplanet purchased 23.35 bitcoins for $1.58 million. This purchase increased the total amount of bitcoins on the company's balance sheet to 141.07 BTC, which is equivalent to $9.54 million. The average purchase price of one bitcoin was 10.27 million Japanese yen, or about $65 300. The company previously made investments in cryptocurrency on April 23 and May 10, 2024.
Board approval
At the end of May 2024, the board of directors of Metaplanet, which is called the “Asian Microstrategy,” approved the purchase of bitcoins in the amount of 250 million yen. The decision was made in response to ongoing economic difficulties in Japan, including high levels of government debt and falling real interest rates. The company intends to use Bitcoin as a strategic reserve asset for the treasury.
Market reaction
After the announcement of the Bitcoin purchase, Metaplanet shares reacted with a significant increase. The stock closed at 89 yen on Tuesday, up 10% from the previous day. It is noteworthy that in April 2024, Metaplanet shares were trading at only 19 yen. Thus, over the last 24 hours the increase was 9.88%.
According to BitcoinTreasuries, public companies around the world own more than 308,500 bitcoins. This ranking is topped by Michael Saylor's Microstrategy, which owns 214,400 BTC. Metaplanet, following the Microstrategy strategy, is strengthening its position in the market, increasing its share in cryptocurrencies.
Strategic goals of the company
Metaplanet representatives said their goal is to use Bitcoin as a strategic reserve to overcome economic difficulties. High levels of government debt and falling real interest rates in Japan make cryptocurrency an attractive asset for long-term investment.
Metaplanet's investment in Bitcoin and the subsequent rise in shares confirm the growing interest of large companies in cryptocurrencies as strategic assets. In conditions of economic instability, Bitcoin becomes not only a means of hedging, but also a way to increase the capitalization of companies. The Metaplanet example shows that even in Asian markets, cryptocurrencies can play a key role in corporate strategies.
