Metaplanet Expands Bitcoin Holdings with $11.3 Million Purchase

Metaplanet, a publicly listed Japanese firm, has significantly increased its Bitcoin holdings, now surpassing 1,100 BTC. On November 19, 2024, the company revealed that it had acquired an additional 124.117 Bitcoin, valued at approximately 1.75 billion yen, or $11.33 million, as part of its ongoing strategy to diversify its reserve assets by investing in Bitcoin.

With this new acquisition, Metaplanet’s total Bitcoin holdings now stand at 1,142.87 BTC, which is currently worth an estimated $104.54 million. This acquisition further strengthens the firm’s Bitcoin portfolio, following a clear pivot towards cryptocurrency as its primary reserve asset. Metaplanet’s Bitcoin purchases have been made at an average price of 9,955,874 yen per Bitcoin.

BTC Yield: A Key Performance Metric for Metaplanet

Metaplanet uses a metric called “BTC yield” to measure the effectiveness of its Bitcoin acquisition strategy. For the period between July 1 and September 30, the company reported a BTC yield of 41.7%. However, between October 1 and November 19, 2024, Metaplanet’s BTC yield surged to an impressive 186.9%, marking a substantial growth in the company’s crypto holdings relative to its overall market performance.

This metric is key to the company’s strategy and has helped it evaluate its approach to acquiring Bitcoin, positioning the company as a significant player in the growing institutional adoption of cryptocurrencies.

Leveraging Real Estate and Debt for Bitcoin Acquisitions

The funds for Metaplanet’s latest Bitcoin acquisition were raised through the issuance of 1.75 billion yen worth of bonds to EVO FUND on November 18, 2024. The bonds are part of Metaplanet’s third series of ordinary bonds, which come with a 0.36% annual interest rate. These bonds are fully guaranteed by the company’s president and representative director, Simon Gerovich, and are secured by a first-priority mortgage on the Hotel Royal Oak Gotanda, a property owned by Metaplanet’s subsidiary, Wen Tokyo Inc.

The bonds have a maturity date of November 17, 2025, and represent the company’s innovative approach to financing its Bitcoin acquisitions by using real estate-backed instruments. This method mirrors strategies used by other large Bitcoin buyers, including MicroStrategy, which has been using debt to fund its Bitcoin purchases.

“Asia’s MicroStrategy” – Metaplanet’s Bitcoin Strategy Pays Off

Metaplanet has earned the nickname “Asia’s MicroStrategy” due to its similar strategy of using debt to fund large-scale Bitcoin purchases. The company’s approach has been successful in driving the value of its stock higher. Following the announcement of its third series of ordinary bonds, Metaplanet’s shares rose by 5%. After revealing the additional Bitcoin purchase, the stock price gained another 14%.

Metaplanet’s strong performance in the market has been evident this year, with the company’s stock increasing by approximately 1,017% year-to-date, making it the best-performing Japanese stock of 2024. This remarkable growth highlights the success of the firm’s aggressive Bitcoin strategy.

The Future of Metaplanet’s Bitcoin Strategy

Metaplanet’s continuous accumulation of Bitcoin reflects the company’s confidence in the cryptocurrency’s long-term value as a reserve asset. By using bonds and leveraging real estate for collateral, the company has been able to expand its Bitcoin holdings while maintaining favorable terms. Metaplanet’s strategy, particularly its use of BTC yield as a performance indicator, underscores the company’s commitment to positioning itself as a leading corporate holder of Bitcoin in Asia.

As the company continues to implement its Bitcoin acquisition strategy, Metaplanet’s growing Bitcoin portfolio could potentially provide long-term benefits for its shareholders, as the value of Bitcoin continues to rise and institutional adoption of cryptocurrencies expands globally.