Buying Bitcoin Pays Off Metaplanet, Stocks Jump Over 800% YTD

Japanese investment firm Metaplanet has been on an aggressive Bitcoin buying spree. Earlier this week, it announced the addition of 21,877 BTC to its stash, bringing its total holdings to 225,611 BTC.

At its current price, the Tokyo-listed company now holds nearly $14.8 million worth of Bitcoin. This investment strategy has clearly paid off, as Metaplanet has seen its stock rally this year, with a significant increase in May after the company announced it was using Bitcoin. Metaplanet’s Bitcoin Strategy Pays Off

According to CoinGecko, following a series of acquisitions, Metaplanet has strengthened its position as the 21st largest corporate BTC holder in the world.

The market reaction to the news seems to be overwhelmingly positive. Shares of Metaplanet — trading under the ticker symbol 3550 on the Tokyo Stock Exchange — have surged 60% to 145 yen in the past five days, according to data compiled by Google Finance. The stock is up almost 16% in the past 24 hours alone, putting year-to-date earnings up more than 800%.

In May this year, the company first announced that it would hold Bitcoin as its strategic treasury reserve asset.

Still, data from Bitcointreasuries.net revealed that Metaplanet’s initial Bitcoin acquisition occurred on April 23, when it purchased 97.85 BTC. Subsequent purchases included 19.87 BTC on May 10, 23,351 BTCon on June 11, 20,195 BTC on July 1, 42.46 BTCon on July 8, and the most recent acquisition of 21,877 BTC on July 16. Metaplanet’s Ambitious Turnaround on Bitcoin

The Metaplanet strategy is similar to MicroStrategy’s bitcoin accumulation tactics.

The firm, dubbed “Asia’s MicroStrategy,” often employs the same investment strategies as the U.S. business intelligence firm. Funding Bitcoin purchases through bond sales, Metaplanet’s approach has underscored the growing trend of institutional BTC adoption.

It should be noted that Japan’s ongoing economic problems, including significant government debt, persistently negative real interest rates, and a persistently weakened yen, influenced Metaplanet’s decision to invest in Bitcoin.

The company has previously stated that it views cryptoassets as “fundamentally superior” to all other forms of political currency, traditional stores of value and investments, and all other cryptoassets/securities.

“Bitcoin is an absolutely scarce digital synthetic monetary commodity, with no central issuer. Bitcoin’s monetary policy is rigidly set until 2140, which distinguishes it from both monetary metals and competing crypto projects operated by the whims of centralized teams of developers. There will only be 21,000,000 bitcoins.”