Japanese investment firm Metaplanet has significantly increased its Bitcoin holdings with a recent purchase of 5,419 BTC, valued at approximately $633 million. This acquisition elevates the company to the world's fifth-largest corporate holder of the digital asset, bringing its total treasury to 25,555 BTC.
Key Takeaways
- Metaplanet purchased 5,419 Bitcoin for about $633 million, raising its total holdings to 25,555 BTC.
- The company is now the fifth-largest corporate holder of Bitcoin globally, with a treasury valued at nearly $3 billion.
- Despite the aggressive Bitcoin accumulation, Metaplanet's stock has declined over 30% in the past month.
- The firm is planning to raise an additional $1.44 billion through a new share issuance to fund further Bitcoin purchases and business expansion.
Details of the Latest Bitcoin Acquisition
Metaplanet confirmed on Monday that it acquired the 5,419 Bitcoin at an average price of 17,281,012 Japanese yen per coin. This translates to an approximate cost of $117,000 per Bitcoin, making the total investment around $633 million.
At the time of the announcement, the market price of Bitcoin was roughly $112,500. This means the company's latest purchase was immediately at an unrealized loss of approximately 3.9%. Despite short-term price fluctuations, the move signals a strong long-term conviction in the digital asset.
According to company data, this strategy has increased Metaplanet's Bitcoin yield, which measures the change in total Bitcoin per fully diluted share. The yield grew by 10.3% between July 1 and September 22.
Metaplanet's Bitcoin Treasury
- Latest Purchase: 5,419 BTC
- Total Holdings: 25,555 BTC
- Approximate Value: Nearly $3 billion
- Global Corporate Rank: 5th Largest Holder
Climbing the Ranks of Corporate Bitcoin Holders
With its total holdings now reaching 25,555 BTC, Metaplanet has secured a top position among public companies investing in Bitcoin. Data from BitcoinTreasuries.NET confirms its new status as the fifth-largest corporate treasury worldwide, a significant jump for the Japanese firm.
The total value of Metaplanet's Bitcoin reserve is now close to $3 billion. This marks a substantial increase from its valuation of $2.1 billion just one month prior, driven by both new purchases and movements in the asset's market price.
This strategy places Metaplanet in the company of other major corporate investors like MicroStrategy, which has pioneered the use of Bitcoin as a primary treasury reserve asset. The trend reflects a growing corporate interest in digital assets as a hedge against inflation and a store of value.
What is a Corporate Bitcoin Treasury?
A corporate treasury refers to the assets a company holds in reserve. Traditionally, this includes cash and low-risk securities. A growing number of companies, like Metaplanet, are now allocating a portion of their treasury to Bitcoin, treating it as a long-term investment and a reserve asset.
Stock Performance Diverges from Bitcoin Strategy
While Metaplanet's Bitcoin balance has grown, its stock performance has told a different story. On Monday, the company's shares saw a modest increase of 3.8%, closing at $4.09. However, this follows a period of significant downward pressure.
Over the past month, Metaplanet's stock has fallen by more than 30%, according to data from Google Finance. This decline poses a challenge to the company's fundraising model, which relies on its share price to finance its Bitcoin acquisitions.
Despite the recent downturn, the stock has performed well over a longer period. Year-to-date, Metaplanet shares are up nearly 78%. Still, the current price is a considerable distance from its all-time high of $15.35, which was recorded on May 21 of this year.
Future Expansion and Strategic Fundraising
Facing pressure from a declining share price, Metaplanet is doubling down on its growth strategy. The company appears committed to expanding its Bitcoin holdings and related business operations aggressively.
Earlier this month, the firm announced two new subsidiaries to support its goals. Metaplanet Income Corp. was established in Miami as a wholly owned U.S. entity with an initial capital of $15 million. Simultaneously, it launched Bitcoin Japan Inc. to bolster its domestic operations related to the digital asset.
New Share Issuance Planned
To fund its continued expansion, Metaplanet has announced plans to issue 385 million new shares. The company intends to offer these shares at a discount of nearly 10% to their market price.
This initiative is expected to raise an estimated $1.44 billion. The capital will be used primarily to purchase more Bitcoin and to invest in its newly formed business ventures, reinforcing its commitment to its digital asset-focused strategy.
