Bitcoin Rebound Toward $65,000 As Metaplanet Buys $1.2 Million Worth Of BTC

Japanese investment and consulting firm Metaplanet announced earlier today that it added 21.88 BTC, worth over $1.2 million, to its growing Bitcoin reserve. The acquisition came amid a sudden rally that has driven the price of the world’s largest cryptocurrency close to $65,000. 

Japanese Investment Firm Metaplanet Acquires $1.2 Million BTC For Treasury 

According to a statement by the Tokyo Stock Exchange (TSE) listed company on July 16th, the latest acquisition brings its total Bitcoin holdings to 225.611 BTC, about $14.2 million, bought at an average cost of $35,158 per BTC. 

The purchase combined with the 4% rise in Bitcoin’s price over the last 24 hours saw Metaplanet’s stock surge by 25.8% to $0.74 during the opening hours of the Tuesday morning session on the TSE. 

Metaplanet had made another purchase earlier this month, taking advantage of Bitcoin’s price dip to buy 42.47 BTC for $2.5 million on July 7th. The tokens were bought at an average price of $62,000 per piece, about 7% higher than the market price of Bitcoin at that time. 

Metaplanet Is Storing Bitcoin As A Hedge Against Economic Adversities In Japan

The Bitcoin acquisition is the company’s response to the persistent economic adversity in Japan. In May, Metaplanet announced that it is adopting Bitcoin as a strategic reserve asset to hedge against “sustained economic pressures” in the country caused by high government debt, prolonged periods of negative interest rates, and the “consequently weak yen”. 

Japan’s fiscal challenges have led to the yen falling to a 34-year low in April. As per the International Monetary Fund (IMF), the world’s third-largest economy now holds the highest debt-to-GDP ratio among developed countries at 254.6%. 

The Japanese yen has fallen nearly 54% against the US dollar since January 2021. Meanwhile, Bitcoin is up over 145% against the yen in the last 12 months. 

In a press release at the time, Metaplanet said Bitcoin provides a “non-sovereign store of value” that has appreciated against fiat currencies. The company added that the asset’s monetary policy is “set in stone through 2140”, differentiating it from “monetary metals and competing crypto projects”. 

The Japanese investment giant added in the release that it aims to utilize “an entire range” of capital market instruments to grow its Bitcoin reserves. 

Metaplanet Is Asia’s MicroStrategy

Metaplanet made its Bitcoin debut in April when it officially adopted the cryptocurrency as a treasury asset and bought the first batch for $6.5 million. Notable individuals such as Morgan Creek Capital founder Mark Yusko and Ordiswap founding member Jack Liu supported the Web3 investment firm’s decision to add BTC to its reserves. 

Jason Fang, founder of crypto venture capital firm Sora Ventures, said Metaplanet’s adoption of Bitcoin would allow Japanese investors to gain exposure to the BTC without regulatory risk. 

The company is known as “Asia’s MicroStrategy” as it follows a similar playbook to Bitcoin advocate Michael Saylor’s software firm MicroStrategy – the world’s largest corporate Bitcoin shareholder. The Nasdaq-listed, Fortune 500 company began acquiring the apex cryptocurrency as a reserve asset in August 2020 when it traded in the $10,000 range. 

In the four years since, MicroStrategy has amassed over 214,246 BTC at an average purchase price of $33,706 per Bitcoin, amounting to $13.6 billion. Its acquisitions have returned 100% profit. 

Saylor’s trust in Bitcoin inspired other publicly listed companies to adopt similar strategies. The billionaire claims to have convinced Tesla and SpaceX CEO Elon Musk to purchase $1.5 billion worth of BTC in January 2021. 

Last month, Metaplanet’s board of directors agreed to purchase Bitcoin worth $6.2 million using the capital raised through a round of bond issuance. Data from Bitcointreasuries.net shows that the company previously purchased Bitcoin on April 23, May 10, June 11, July 1, and July 8. 

Metaplanet anticipates the move to position itself as a pioneer in the adoption of digital assets in Japan. 

At the time of writing, BTC is trading at $63,553 – up 1.28% over the last 24 hours. 

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