Metaplanet Bitcoin Holdings Surge Leads to $28 Million Valuation Increase
Metaplanet, often called Asian MicroStrategy, has increased its Bitcoin holdings by $28 million. This surge has resulted in the company’s market valuation doubling since the start of the year.
Asian MicroStrategy with Multiple Bitcoin Purchases
Metaplanet initiated a Bitcoin accumulation strategy in mid-May, aiming to adopt Bitcoin as its primary treasury asset. The initial investment goal was 1 billion yen (approximately $6.8 million), supported by a loan of the same amount.
Japan faced economic challenges, including Yen devaluation. Metaplanet's CEO indicated that the Bitcoin strategy responds to high government debt, negative real interest rates, and a weak yen.
The company started with 117.7 BTC, valued at about $7.2 million, gradually increasing its holdings. By late August, total Bitcoin holdings reached 360.368 BTC after acquiring an additional 57.273 BTC for 500 million yen ($3.4 million). Within two months, the firm more than doubled its holdings.
In October, Metaplanet purchased 156 BTC valued at 1.6 billion Japanese Yen, becoming Asia's largest corporate Bitcoin holder with approximately 1,000 BTC. As of mid-November, total holdings rose to 1,018.17 BTC, worth $64 million.
Metaplanet Enjoys Benefit of Its Bitcoin Accumulation Strategy
The acquisitions have proven beneficial as Bitcoin recently traded at $87,511.92, rising over 105% this year, which also positively impacted Metaplanet’s stock. CEO Simon Gerovich noted a 500% increase in stock value over six months, with a reported gain of JPY 4.27 billion ($28 million) on Bitcoin holdings. The company intends to continue increasing its Bitcoin assets through capital market activities and operational income.
Additionally, Metaplanet generates yield by selling out-of-the-money Bitcoin options, achieving a BTC yield of 155% in the last quarter.