Following MicroStrategy’s lead, more and more companies are building BTC reserves, seeking to capitalize on possible growth in Bitcoin. A path that Metaplanet has decided to take. The Japanese company has managed to obtain funds to satisfy its ambition, allowing it to increase its treasury beyond 1,200 BTC.
Metaplanet set to quintuple its BTC reserves
Metaplanet, a company specializing in finance, real estate and trading, continues its strategy of increasing its Bitcoin (BTC) reserve. To achieve its goal, The Japanese investment company announced that it had raised 11 billion yen, or nearly $75 million..
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The vast majority of the funding, 10 billion yen, or about $68 million, was obtained through a share issueThe remainder, namely 1 billion yen corresponding to 6.8 million dollars, corresponds to a loan that was kindly granted to it by one of its shareholders, MMXX Ventures.
*Metaplanet secures ¥1 billion 0.1% APR loan; proceeds to fund additional purchases of $BTC* pic.twitter.com/seN6YdrnLO
— Metaplanet Inc. (@Metaplanet_JP) August 8, 2024
Obtaining this funding takes place within a specific framework. Indeed, at the beginning of the week, the bitcoin price plummeted from $65,000 to less than $50,000 in just a few hours. However, as Metaplanet explains in its asset show, this has not slowed down its ambitions. :
“The majority of the funds raised will be strategically allocated to the purchase of Bitcoin. This decision is based on a thorough analysis indicating that, despite the significant decline in the price of Bitcoin in recent weeks, there is potential for substantial long-term growth. In addition, Bitcoin can serve as a hedge against the depreciation of fiat currencies, particularly the Yen. Holding Bitcoin as a primary asset aligns with Metaplanet’s long-term growth strategy.”
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Increasing its BTC reserves and speculating on a price increase: MicroStrategy knows how to do it
This strategy aims to capitalize on the growth opportunities offered by Bitcoin, is drastically closer to that applied for several years by MicroStrategy.
The business intelligence software publisher recently bought $11.4 million worth of Bitcoin. He owns no less than 226,500 BTCworth nearly $13 billion at the current price of Bitcoin.
At present, Metaplanet is said to hold 1,000 times less BTC than MicroStrategy, 246 BTC exactly for an amount of $14 million. However, its ambitions are clear: The company plans to increase its BTC reserves in the coming months.
Of the $75 million raised, more than $60 million will be used to purchase Bitcoins. This would represent approximately 1,052 BTC (at current prices), which should allow the Japanese company to increase its reserves fivefold..
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Since announcing its strategic plan on April 9 to make Bitcoin its primary treasury reserve asset, Metaplanet's stock price has increased by an average of 460%trading at 893 Japanese yen per share on August 8, or just over $6. The stock price had even risen to 3,000 yen in mid-July before falling sharply below 1,000 yen.
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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