Japan's Metaplanet buys 619.7 Bitcoins worth $60M, now holds 1,762 BTC

Japan’s Metaplanet announced the purchase of an additional 619.70 BTC on Monday, capitalising on the Bitcoin dip to the $95,000 level.

The total estimated cost of the deal was around $60 million (around £47 million).

As per a statement by the company, the average price for the purchase was around $96,000.

This acquisition brings the company’s total Bitcoin holdings to 1,761.98 BTC, valued at approximately $168 million.

The average purchase price of its total holding is around $75,600 per Bitcoin.

Metaplanet’s latest Bitcoin purchase, the largest since it began acquiring the cryptocurrency in May, brings its total holdings to the 12th-largest Bitcoin stack among public companies, just behind medical tech maker Semler Scientific.

Metaplanet's Bitcoin play

The latest Bitcoin acquisition follows the company’s recent bond issuances.

Last week, the Tokyo-listed company announced the issuance of ¥4.5 billion ($30 million) in zero-interest bonds to expand its Bitcoin holdings, aligning with its strategy to accumulate the cryptocurrency as a core asset.

This move mirrors MicroStrategy's well-known approach of leveraging corporate reserves to acquire Bitcoin, positioning Metaplanet as a Bitcoin-focused business in Japan.

The company officially designated itself as a Bitcoin Treasury company, highlighting its strategy to acquire and manage Bitcoin as a core corporate asset to protect against the declining Japanese Yen.

From October 1 to December 23, Metaplanet reported a BTC Yield of 310%, significantly up from 41.7% in the previous quarter (July to September).

The firm uses BTC Yield to evaluate the performance of its Bitcoin acquisition strategy, which it says aims to be accretive to shareholders.

It disclosed its intention to formally establish Bitcoin accumulation and management as a business line, incorporating instruments such as loans, equity, and convertible bonds for purchasing and holding BTC.

Metaplanet's stock price

With the surge in Bitcoin holdings and the impressive yield, Metaplanet's stock price has gone up by more than 2,000% year-to-date, pushing the company’s valuation to over $1 billion.

Last week, Metaplanet projected it would achieve its first operating profit since 2017 and expressed plans to extend its strategy beyond merely buying Bitcoin.

The company expects to generate $5.8 million in revenue for the fiscal year ending December 31.

The company’s operating profit is projected to reach $1.72 million, representing a sharp turnaround from the $2.98 million loss it reported last year.

Bitcoin remains under pressure

Bitcoin dropped 10% during the week ending December 22, closing at $94,645, down by around $10,500 from its starting point of $105,185, according to TradingView.

This decline followed the US Federal Reserve’s decision to reduce the number of projected interest rate cuts for next year from five to two after implementing its third consecutive rate cut.

Bitcoin continued its decline for the third consecutive day on Monday, trading just above the $95,300 mark, a 0.88% drop over the last 24 hours.