Japan’s Metaplanet, often referred to as the country’s version of MicroStrategy, has made a significant move in the cryptocurrency market by purchasing an additional 581 Bitcoins (BTC) for approximately $61 million. This acquisition brings the company’s total BTC holdings to 18,113, valued at around $1.83 billion at current prices. The average purchase price per coin was $118,519, highlighting the company’s commitment to its Bitcoin-first approach.
Metaplanet’s Strategic Bitcoin Accumulation
Metaplanet’s latest purchase is part of its broader strategy to accumulate 30,000 BTC by the end of 2025. The company has been aggressively buying Bitcoin over the past few months, including a recent purchase of 463 BTC. This approach is designed to hedge against yen weakness and sovereign debt risks, with a long-term goal of controlling 1% of BTC’s total supply. According to Metaplanet CEO Simon Gerovich, the company needs to accumulate as much Bitcoin as possible to reach a point where it becomes difficult for others to catch up.
Metaplanet’s two-stage strategy involves aggressive Bitcoin accumulation through equity issuance and debt financing in the first phase. The second phase will see the company leveraging its BTC reserves to secure financing, which will be used to acquire profitable, cash-flowing businesses that align with its strategy. This could potentially include investments in digital banking and financial services. The company’s commitment to its Bitcoin strategy has driven its stock to record highs, although recent market pressures have cast a bearish short-term outlook.
Market Performance and Challenges
Despite the company’s success in accumulating Bitcoin, Metaplanet’s stock has plummeted roughly 37% over the last month and now trades 55% below this year’s peak. The drop has pulled its market capitalization down by 44%, from ¥1.14 trillion to about ¥638 billion. This selloff is likely fueled by profit-taking among investors, particularly after the company’s meteoric run this year. At its June high, Metaplanet’s stock was up more than 15,000% from its 2024 lows, making it one of the best-performing equities globally.
Broader Market Trends and Implications
The cooldown in Bitcoin treasury stocks is another key driver of Metaplanet’s stock slide. MicroStrategy, the pioneering bitcoin corporate treasury, is down 30% from its high, while MARA Holdings and Trump Media have also posted double-digit losses. Despite this, Metaplanet remains up 175% year-to-date, demonstrating the company’s long-term commitment to its Bitcoin strategy. The pullback in valuation does not appear to have shaken its resolve, with the company recently announcing plans to raise another $3.7 billion to buy more Bitcoin. As the cryptocurrency market continues to evolve, Metaplanet’s approach will be closely watched by investors and industry observers alike.
Bitcoin itself has been trading higher over the past week, up roughly 3.8%. It briefly climbed above $122,000 before easing to about $118,706 at the time of writing. As the market continues to fluctuate, Metaplanet’s strategic accumulation of Bitcoin will be an important factor to watch. With its commitment to its Bitcoin-first approach and its plans for future expansion, the company is poised to remain a major player in the cryptocurrency market.
