Japanese investment firm Metaplanet Inc. saw its stock price surge 21% after disclosing a purchase of $1.2 million worth of Bitcoin, completing its plan to buy 1 billion yen worth of Bitcoin.
Points
- Metaplanet purchased 20.381 BTC, worth about $1.2 million.
- The firm’s total Bitcoin holdings are now 245.992 BTC.
- Metaplanet’s stock jumped 21% following the announcement.
- The firm has been adopting Bitcoin as its strategic treasury reserve asset.
Japanese investment firm Metaplanet Inc. experienced a significant surge in its stock price, rising by 21% during morning trading on Monday. This increase followed the firm’s announcement that it had acquired an additional 20.381 BTC, worth approximately 200 million yen （$1.27 million）. This purchase brings Metaplanet’s total Bitcoin holdings to 245.992 BTC.
The acquisition marks the completion of Metaplanet’s initial plan to purchase 1 billion yen worth of Bitcoin, which was announced on June 24. This strategic move comes in response to sustained economic pressures in Japan, including high government debt levels, prolonged negative real interest rates, and a weakened yen.
Since May, Metaplanet has made multiple Bitcoin acquisitions, demonstrating its commitment to using Bitcoin as a strategic treasury reserve asset. Data from Bitcointreasuries.net indicates that Metaplanet’s Bitcoin purchases occurred on several occasions, including April 23, May 10, June 11, July 1, July 8, and July 16.
The firm disclosed that the average purchase price of its Bitcoin holdings was approximately 9.96 million yen （$63,250） per Bitcoin. This ongoing investment strategy reflects Metaplanet’s belief in Bitcoin’s potential as a hedge against economic instability.
The recent stock surge highlights the market’s positive reception to Metaplanet’s strategic decision to incorporate Bitcoin into its treasury reserves. As the firm continues to navigate economic challenges, its commitment to Bitcoin remains a pivotal aspect of its financial strategy.
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Explanation
- Metaplanet’s strategic adoption of Bitcoin as a treasury reserve asset is aimed at mitigating economic pressures.
- The firm’s multiple Bitcoin acquisitions demonstrate its confidence in Bitcoin’s value.
- The stock surge indicates market approval of Metaplanet’s Bitcoin investment strategy.