- Metaplanet acquires 1,111 BTC, reaching 11,111 BTC total.
- Purchase worth $108M, funded via stock acquisition rights.
- Firm targets 210,000 BTC by 2027, 1% of Bitcoin’s supply.
The Japanese Metaplanet has purchased 1,111 Bitcoin, bringing its total ownership to 11,111 BTC. This acquisition, which was 17.26 billion yen ($108 million), was made at an average price of 15.54 million yen ($97,000) per Bitcoin, as stated in a filing received by Japanese regulators on June 23. The move is an important stride in the aggressive treasury move of the firm.
Strategic Bitcoin Accumulation
The recent purchase of Metaplanet takes them much beyond their 2025 goal of attaining 10,000 BTC, landing six months early. The publicly traded company Tokyo has evolved to possess Bitcoin of more than one billion dollars, and the average cost basis of one coin is maintained at a price of 95,869 dollars. The goal of the company is to cumulatively own 210,000 BTC by 2027 (about 1 percent of the total amount of Bitcoin).
The move is known as the 21 Million Plan because the company will take advantage of the limited supply of Bitcoin. By 2025, Metaplanet aims to have 30,000 BTC in circulation, and by 2026, that number rises to 100,000. CEO Simon Gerovich sees Bitcoin as a foundation asset and intends to provide Japanese investors with an efficient means of acquiring exposure to the cryptocurrency.
In order to finance this acquisition, Metaplanet sold new stock purchase rights totalling 558.7 million yen to EVO FUND. Convertible bonds and stock warrants have also been used by the company to finance the Bitcoin purchases, balancing between dilution of stock and treasury growth. Such a strategy has led to a 306.7 percent year-to-date yield of Bitcoin, which is a positive show of returns to shareholders.
Market Impact and Risks
The company has seen its stock perform more than 1,600 percent higher in the last year compared to the performance of many companies around the world. Stocks are being sold above market price now, meaning the price per coin of Bitcoin is 93-118 million yen (596,000 to 759,000 dollars) at the moment. This is an indication of the strong demand among investors to obtain exposure to Bitcoin via regulated products such as Metaplanet.
However, the strategy carries risks. The fact that the entry of more companies in the same Bitcoin hoarding strategy has been increasing at a high rate (more than 220 have taken the same approach) raises fears that liquidity is being drained in the market, and also investors are getting scared. It is possible that fast capital raises to buy Bitcoins might stress markets in case sentiments change. All these dangers notwithstanding, the fact that Metaplanet has concentrated on Bitcoin has made it the largest corporate Bitcoin-holding in Asia, as compared to 9,267 BTC of Coinbase.
The company has a Bitcoin-to-share ratio, which is denoted by its proprietary BTC Yield measure, and it doubled this quarter to 107.9%. This growth underscores the effectiveness of its treasury approach. Metaplanet holdings are only 398 BTC behind Tesla, which has disclosed holdings amounting to 11,509 BTC, with expectations that it is going to surpass Tesla in the short term.
Metaplanet’s aggressive strategy has drawn global attention. Its thinning of hotel services, such as its planned rebranding of its Royal Oak property as The Bitcoin Hotel, points to a greater ambition to have Japan as the center of its crypto economy. To be fully associated with the rising popularity of cryptocurrency, the hotel will also conduct events that relate to Bitcoin.
The post Japan’s Metaplanet Boosts Bitcoin Holdings to 11,111 BTC appeared first on Live Bitcoin News.
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