Japanese investment adviser Metaplanet (3350) has made a significant investment in bitcoin, acquiring an additional 1 billion yen ($6.7 million) worth of the cryptocurrency. This purchase has increased Metaplanet’s bitcoin holding to 639.5 BTC, which is equivalent to approximately $40.6 million based on current prices.
The Tokyo-listed company revealed that it purchased around 108.8 BTC at an average price of just under 9.2 million yen per coin. Since adopting bitcoin as a reserve asset in May, Metaplanet has spent nearly 6 billion yen on the digital currency, with an average purchase price of 9.3 million yen per BTC.
This strategic move by Metaplanet is aimed at hedging against the volatility of Japan’s native currency. The company now holds the second-largest bitcoin stash among Asia-listed companies, trailing behind Hong Kong-based technology firm Meitu (1357), which holds approximately 941 BTC. The largest publicly traded owner of bitcoin remains Tysons Corner, Virginia-based MicroStrategy, with a holding of over 252,000 BTC.
In addition to acquiring bitcoin, Metaplanet has also ventured into selling bitcoin put options to generate additional income for purchasing more BTC. The sale of 223 contracts on Oct. 3 resulted in a premium of 23.972 BTC ($1.44 million). A put option provides the holder with the right, but not the obligation, to sell the underlying asset at a predetermined price.
Following this investment, Metaplanet’s shares saw a 7.9% increase to 988 yen and have soared over 500% year-to-date. The company’s proactive approach towards cryptocurrency investments has proven to be lucrative, attracting investor interest and driving significant gains in share value.
As the cryptocurrency market continues to evolve, more traditional financial institutions and companies are recognizing the potential of digital assets like bitcoin as a valuable investment opportunity. With the increasing acceptance and adoption of cryptocurrencies, the landscape of the financial industry is undergoing a transformative shift towards a more decentralized and digital future.
It is important for investors to stay informed about the latest developments in the cryptocurrency market and conduct thorough research before making investment decisions. Companies like Metaplanet serve as a testament to the growing interest and confidence in the long-term viability of bitcoin and other digital assets as a store of value and investment asset.