Metaplanet: Company Shares Soar 15% After $11.3 Million Bitcoin Purchase
Date: 2024-11-20 Author: Henry Casey Categories: BUSINESS
Amid the new purchase, Metaplanet shares have risen in price by 15.1%, as it became known from the company's report. The company acquired an additional 124.1 BTC at an average price of about 14.1 million yen ($91,266) per coin. The total transaction amounted to $11.3 million, and the current volume of the company's bitcoin reserves reached 1,142.2 BTC, which is equivalent to $104.8 million.
Metaplanet's Success on the Stock Exchange
The company's shares ended the day at 2,295 yen, with a daily turnover of 21.9 billion yen ($141.7 million). Metaplanet shares have risen 1,334% year-to-date, significantly outperforming Japan’s Nikkei 225, which has gained just 0.5% over the same period.
The company’s CEO Simon Gerovich noted on social media that Metaplanet ranked 29th among 4,000 Japanese companies in terms of trading volume, beating out giants like Itochu and NTT.
These results are in line with the company’s strategy, announced in May, to use Bitcoin as a treasury reserve asset. From October 1 to November 19, the company recorded a yield of 186.9% on BTC.
To further buy cryptocurrency, Metaplanet issued one-year bonds worth 1.75 billion yen ($11.3 million). These bonds will be redeemed in November 2025.
Metaplanet's success reflects a general trend: large companies are actively investing in Bitcoin amid global economic instability caused by inflation and geopolitical risks.
For example, the American company MicroStrategy recently acquired Bitcoin worth $4.6 billion and announced plans to raise another $1.75 billion through convertible bonds for further purchases. MicroStrategy shares have grown by 500% in 2024, which significantly exceeds, for example, the 11% growth of Microsoft.
MicroStrategy owns 331,200 BTC, the average purchase price of which is $88,627 per coin. At the current cryptocurrency rate, the company has $13.7 billion in unrealized profit.
Not only private companies see the potential of Bitcoin. In the United States, Pennsylvania State Representative Mike Cabel has proposed a bill that allows investing up to 10% of government funds in Bitcoin. The bill proposes using cryptocurrency for investments from major budget funds, including a reserve fund "for a rainy day".
Interest in Bitcoin continues to grow from both private businesses and government agencies, confirming its growing role in the global economy.
