Institutional capital is making a significant foray into Bitcoin treasuries, with one of the American investment giants, the Capital Group, taking a substantial stake in Metaplanet, a Japanese Bitcoin finance company. 
Capital Group’s Investment in Metaplanet
The Capital Group has acquired an 11.45% stake in Metaplanet, valued at nearly $500 million, making it the largest shareholder in the company. This investment was made through its subsidiary, Capital Research and Management Company, and has increased the Capital Group’s voting rights from 8.31% to 11.45%, surpassing National Financial Services LLC as the top shareholder.
Metaplanet has been actively expanding its Bitcoin holdings, with a recent purchase of 5,419 BTC worth around $633 million. The company now holds approximately 25,500 BTC in its portfolio, placing it among the top five largest Bitcoin treasuries globally. This development is a significant indication of the growing interest of institutional investors in Bitcoin and its potential as a store of value.
Capital Group’s Bitcoin Strategy
The Capital Group has been gradually increasing its exposure to Bitcoin and related assets in recent years. Its largest investment in this space has been in Microstrategy, the largest public owner of BTC. In 2021, the company acquired a 12.3% stake in Microstrategy for over $500 million, which now has a value of approximately $6.2 billion after a multi-year bull run in the Microstrategy stock.
Notably, the Capital Group does not currently hold Bitcoin directly on its balance sheet but offers a BTC exchange-traded fund. Instead, the company focuses on using its equity participations in companies with large corporate treasuries in BTC as a means of participating in the growing acceptance of Bitcoin as an institutional wealth class. This approach allows the Capital Group to benefit from the potential upside of Bitcoin without directly holding the asset.
As of the time of writing, Bitcoin is trading at around $111,000, having declined by 4.5% over the past week amidst a broader crypto market struggling to maintain momentum. The Capital Group’s investment in Metaplanet is a significant vote of confidence in the potential of Bitcoin and its role in the future of institutional investing.
For more information on this development and its implications for the crypto market, visit https://crypto.news/u-s-capital-group-takes-largest-stake-in-bitcoin-treasury-firm-metaplanet/
