Japan’s Metaplanet Buys Bitcoin Worth 200M Yen, Share Price Jumps 60% MoM

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As a crypto investor with experience in following Japanese markets, I’m excited about Metaplanet’s recent Bitcoin buying spree. The company’s strategic move to follow MicroStrategy’s footsteps and acquire more Bitcoins is noteworthy, given the current state of the weakening Japanese Yen and the surging Bitcoin price.

Metaplanet, a Japanese publicly-traded company, has recently made a significant purchase of Bitcoin. According to their latest announcement, they have bought 20.2 Bitcoins for approximately 200 million Yen (around $61.5 million USD). Given the current Bitcoin price surge, reaching an all-time high of $63,500 USD, Metaplanet has already started earning profits from this recent acquisition.

MetaPlanet on Bitcoin Buying Spree

Taking a cue from MicroStrategy’s actions, Metaplanet has been actively purchasing Bitcoins over the last two months. Additionally, they revealed plans for a $7 million bond sale in June specifically to acquire more Bitcoins using the sale’s earnings.

*Metaplanet purchases additional 20.20 $BTC*
— Metaplanet Inc. (@Metaplanet_JP) July 1, 2024

Metaplanet now owns a total of 161 Bitcoins after this latest purchase, which is equivalent to approximately 1.65 billion yen. Each Bitcoin was bought for an average price of around 10,231,438 Yen ($63,535). Following MicroStrategy’s lead, Metaplanet aims to accumulate $1 billion worth of Bitcoin in the future.

In light of the Japanese Yen reaching record lows against the US Dollar last week at ¥160.8, Metaplanet’s shift towards Bitcoin adoption becomes more understandable. The Bank of Japan’s monetary policy has contributed to the Yen’s decline, causing concern over its purchasing power. Consequently, an increasing number of businesses in Japan may consider adopting Bitcoin as a hedge against the weakening local currency.

Stock Price Rallies 61%

Over the past month, Metaplanet’s stock (TYO: 3350) experienced an astonishing surge, reaching over 100 JPY with a 61% increase by press time. Since the beginning of 2024, this stock has seen remarkable growth, boasting a 525% price hike. Mirroring this trend is MicroStrategy’s (NASDAQ: MSTR) performance post-Bitcoin acquisition.

As an analyst, I’ve observed that if Bitcoin’s price recovers from its current level and rallies towards $100K, Metaplanet’s stock is likely to continue surging to new heights. The significance of Bitcoin as a store of value and a hedge against the depreciating fiat currency is increasingly recognized by corporations. Moreover, trust in traditional investment funds appears to be waning.

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2024-07-01 11:53