Japan-based investment company Metaplanet continues its strategic investments in the leading cryptocurrency Bitcoin (BTC) without slowing down. Thus, it is solidifying its name as one of the largest institutional Bitcoin holders in Asia. The company announced on October 28 that it has made an additional purchase of 156.78 BTC. The value of this new investment is approximately $10.4 million, bringing Metaplanet’s total Bitcoin holdings to 1,018.17 BTC. With this large purchase, the total value of the company’s BTC assets has reached approximately $68.8 million at current prices.
The leading cryptocurrency has become Metaplanet’s reserve asset
Metaplanet announced in May that it had designated Bitcoin as a strategic treasury reserve asset. This decision was interpreted as an indication that the company preferred Bitcoin as a long-term investment. While Bitcoin purchases were made in controlled amounts in the first step, the company has significantly accelerated its purchases since the end of September. The purchases made by Metaplanet between September 30 and October 28 are particularly noteworthy. During this period, the company purchased a large amount of Bitcoin, such as 619,338 BTC, bringing its total cryptocurrency assets to 1,018.17 BTC.
It is stated that the company’s Bitcoin purchases were largely financed by funds from capital market activities and operational revenues. This also stands out as part of the company’s strategy to grow its revenues from its own operations through cryptocurrencies. Metaplanet also announced last week that it had made a capital increase of approximately 10 billion yen (approximately $66 million) through a share purchase rights plan. With this plan, 13,774 new shareholders became partners in the company.
Measuring performance with BTC return
With the increase in Bitcoin investments, Metaplanet developed a performance metric called “BTC Return”. This new metric expresses the changes between the company’s Bitcoin assets and the publicly traded shares as a percentage. Metaplanet aims to analyze the impact of this metric on stock values more transparently and to provide its investors with a more understandable contribution of cryptocurrency Bitcoin purchases to the company’s value. For example, Metaplanet’s BTC return increased by 155.8 percent between October 1-28. It is stated that the company aims to measure in detail how BTC investments affect company value by determining this metric.
Metaplanet’s being the largest institutional Bitcoin investor in Asia has also had positive reflections on the company’s shares. The company’s share prices increased by 7 percent after the latest statements, reaching 1,150 yen. According to Google Finance data, Metaplanet shares have increased by a remarkable 610 percent since the beginning of the year. Metaplanet, which is traded in Asian markets, left behind other institutional companies that own Bitcoin, such as Hong Kong-based Meitu Inc., and reached the leading position by surpassing Meitu, which has a total of 940.9 BTC. According to Bitcoin Treasuries data, Metaplanet ranks 19th among the top 20 companies that hold the most Bitcoin on a global scale.
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