Metaplanet, a publicly listed Japanese investment adviser, recently made a significant investment in Bitcoin. The company spent $1.2 million to purchase more than 20.2 BTC as part of its strategy to increase its holdings of the world’s largest cryptocurrency by market cap. This investment is part of a larger plan announced a week ago, in which Metaplanet intends to buy an additional $6 million worth of BTC.
The decision to focus on Bitcoin was influenced by changes in the investment environment due to the Covid-19 pandemic, according to the company’s website. Metaplanet now holds a total of 161.3 BTC, with plans to further increase its holdings in the future.
This approach of accumulating Bitcoin is similar to the strategy employed by MicroStrategy, a software developer based in Tysons Corner, Virginia. MicroStrategy has been acquiring BTC for nearly four years and currently holds over 226,000 BTC, which is more than 1% of the total number of Bitcoin that will ever be issued.
Following the announcement of its Bitcoin purchase, Metaplanet’s shares rose by 1%. The company posted a statement about the acquisition on its social media account on X shortly after the close of trading on the Tokyo Stock Exchange.
It is worth noting that CoinDesk, the media outlet that reported on this investment, was acquired by the Bullish group in November 2023. The Bullish group, majority-owned by Block.one, operates a regulated digital assets exchange and has interests in various blockchain and digital asset businesses. CoinDesk functions as an independent subsidiary with an editorial committee to safeguard journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
With the increasing interest in Bitcoin and other cryptocurrencies, it is clear that institutional investors like Metaplanet are recognizing the potential of digital assets as part of their investment portfolios. As more companies follow suit and allocate funds to cryptocurrencies, the market dynamics are expected to continue evolving. Investors and financial advisors are closely watching these developments to assess the long-term implications for the financial landscape.