Japanese Metaplanet to Invest $58.76 Million in Bitcoin
Date: 2024-08-07 Author: Oliver Abernathy Categories: BUSINESS
Japanese public company Metaplanet has announced plans to raise up to 10.08 billion yen (approximately $70 million) through a free rights issue to existing shareholders. The initiative will allow the company to significantly expand its Bitcoin portfolio, allocating nearly $59 million of the funds raised to purchase additional Bitcoin.
Current Bitcoin Investments
Metaplanet currently holds approximately 246 Bitcoins, valued at approximately $13.4 million. The average purchase price of Bitcoins is approximately $63,252 per coin. On the evening of August 6, the price of Bitcoin was approaching $57,000, indicating a loss of about 10%.
Metaplanet positions itself as the “MicroStrategy of Japan,” following the American company’s strategy of actively investing in Bitcoin. MicroStrategy, led by Michael Saylor, has been raising debt and selling stocks since 2020 to accumulate more than 220,000 Bitcoin. Metaplanet is following a similar approach, aiming to use Bitcoin as a reserve asset.
History of Bitcoin Acquisitions
In April 2024, Metaplanet first announced its goal of becoming the first publicly traded Japanese firm to use Bitcoin as a reserve asset. At that time, the company acquired its first 203.7 Bitcoin. In early July, Metaplanet bought another 42.5 bitcoins, spending 400 million yen or $2.5 million on it.
According to management plans, Metaplanet intends to continue to expand its bitcoin portfolio. The company sees bitcoin as a promising investment tool and aims to strengthen its position in the cryptocurrency market.
Metaplanet's investment in bitcoin reflects the growing interest in cryptocurrencies among Japanese companies. Raising significant funds and focusing them on buying bitcoins indicates the company's long-term strategy and its confidence in the future of cryptocurrencies. The desire to become the first public Japanese company to use bitcoin as a reserve asset underscores Metaplanet's ambitions and commitment to innovative financial instruments.
