Tokyo-listed Metaplanet Doubles Down on Bitcoin (BTC) Strategy, Purchases Another 108,999 BTC

Tokyo-listed company Metaplanet Inc., known for its aggressive strategy in Bitcoin (BTC), announced that it purchased an additional 108,999 Bitcoin (BTC) for ¥1 billion (US$6.5 million) on Friday.

Tokyo-listed Metaplanet Inc. (3688), known for its aggressive strategy in Bitcoin (BTC), has announced that it purchased an additional 108,999 Bitcoin for ¥1 billion (US$6.5 million) on Friday, according to a Nikkei report.

This new purchase brings the company’s total Bitcoin holdings to 748,502 BTC, further strengthening its long-term bet on the leading cryptocurrency.

Advanced Bitcoin Strategy

Metaplanet’s strategy in Bitcoin goes beyond just buying BTC. The company employs a sophisticated approach by selling put options in addition to Bitcoin purchases, which provides the company with additional returns. This was confirmed by Peter Chung, head of research at Presto Labs.

“Metaplanet’s strategy allows them to generate excess returns when the Bitcoin price falls, which is a level of sophistication not often seen in other companies,” Chung said.

Continued purchases in October

Friday’s purchase follows previous Bitcoin purchases earlier this month, bringing the company’s total investment in October to ¥6.9 billion (US$46.8 million). Metaplanet now owns 748.5 BTC, worth approximately $45.5 million.

“Metaplanet is now one of three listed companies in Asia buying Bitcoin for their treasuries, alongside Nexon and Meitu,” Chung added.

Chung also noted that the company is benefiting from the recent strengthening of the Japanese yen against the US dollar. Metaplanet started its Bitcoin buying hype in April 2024.

Growth through Bitcoin Strategy

The 13-year-old company sees Bitcoin investments as “the most valuable thing we can do for our shareholders,” a move that initially sent the company’s share price soaring from ¥190 (US$1.32) to a peak of ¥1,008 (US$7.01). Since then, the stock price has fallen slightly to $6.40.

Asian answer to MicroStrategy

Metaplanet’s strategy mirrors that of MicroStrategy, an American software company known for its large cryptocurrency holdings. Like MicroStrategy, Metaplanet has embraced Bitcoin as a core asset in its treasury, and the company billed itself as “Asia’s answer to MicroStrategy” when it unveiled its Bitcoin strategy.

Part of broader trend

Metaplanet’s Bitcoin purchases are part of a broader movement of companies incorporating cryptocurrencies into their long-term investments. Notable examples of this include Tesla, which invested $1.5 billion USD in Bitcoin in 2021, and later sold some of its holdings to diversify.

Square, now Block Inc., also made Bitcoin a key part of its strategy, investing $50 million USD in 2020 and another $170 million USD in 2021.