Metaplanet, a Japanese company known as the MicroStrategy of Asia, has announced on June 11 that they have purchased bitcoins (BTC) once again. Following this announcement, the company’s stock price surged significantly.
In their latest purchase, the company added 23.25 BTC to their balance, bringing their total bitcoin holdings to 141.07 BTC, with a total value of $9.6 million. With this latest purchase, the company has achieved an average purchase price of $65,365 per BTC.
Over the past seven weeks, Metaplanet has purchased bitcoins three times. Just like the previous two times, this purchase also exceeded $1 million. According to CoinGecko, the company has already made a profit of 4.5% on their entire bitcoin investment.
Currently, the company ranks 30th on the list of the largest bitcoin holders among private companies. However, their total holdings still do not come close to MicroStrategy’s over 214,400 BTC.
Investors have reacted positively to the recent purchase, causing Metaplanet’s stock to rise by 10.8% on the Tokyo Stock Exchange. The stock price initially increased by 10.8% and then slightly declined to 89 yen midway through the day.
Since announcing their investment plan in bitcoin on April 9, the company has experienced many positive effects. Investors have shown confidence in the stock, especially since the price has quintupled since April.
Metaplanet’s decision to invest in bitcoin is driven by concerns about Japan’s growing debt burden and the declining value of the Japanese yen. Japan’s debt-to-GDP ratio is currently 261%, meaning that the country is spending over 2.5 times more money than it is bringing in. According to Metaplanet, this ratio is one of the worst among developed countries.
Additionally, the Japanese yen has significantly decreased in value, dropping by 35% against the US dollar since January 2021. Comparing this decline to bitcoin’s 200% increase against the yen in the past 12 months, it becomes clear why Metaplanet has chosen to hold a large portion of their assets in bitcoins.
The company’s strategic move to invest in bitcoin aims to protect themselves against these economic challenges.
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