Making news once again, Metaplanet Inc., often known as “Asia’s MicroStrategy,” raised 10 billion yen (about $68 million) through a recent stock sale. The purpose of this significant investment is to support its aggressiveness Bitcoin acquisition strategy.
Similar to tactics from established companies like MicroStrategy, the move comes as the company continues to position itself as a key player in the cryptocurrency sector.
Metaplanet: A significant investment in Bitcoin
With the participation of over 13,000 individual shareholders, Metaplanet announced on October 22 that it had successfully completed its 11th round of share acquisition rights. This money will be used to purchase more Bitcoin so that the company can expand its already significant resources.
*Metaplanet announces the results of the exercise of rights to acquire shares* pic.twitter.com/MquO6JFNEX
— Metaplanet Inc. (@Metaplanet_JP) October 22, 2024
Metaplanet share price dropped by approximately 5.85% despite successful financing, which indicated some market volatility due to fluctuating Bitcoin values.
“With this financing, we can continue to strengthen our Bitcoin reserves and provide our investors with a cushion against Japan’s economic woes,” CEO Simon Gerovich said in a statement, emphasizing the importance of the financing.
Since the beginning of this year, the company has been actively buying Bitcoin because it sees it as a strategic asset that can aid reduce the risk caused by the falling yen.
BTCUSD trading at $67,485 on the daily chart: TradingView.com
A growing Bitcoin portfolio
Metaplanet has already achieved success with its latest acquisition strategy. Just weeks before announcing the investment, the company paid 1 billion yen (approximately $6.7 million) to acquire an additional 107.91 BTC, bringing its total holdings to approximately 855 BTC. Due to MicroStrategy’s unique approach to cryptocurrency investing, this aggressive accumulation demonstrates its commitment to using Bitcoin as a treasury reserve asset.
Since launching its Bitcoin strategy, the company’s stock has seen impressive growth, rising around 500% this year. Despite occasional declines in the larger cryptocurrency market, investors have responded positively to Metaplanet’s distinct vision and commitment to digital assets.
Impact on the market and future prospects
The fundraising comes at a time when Bitcoin is facing difficulties resistance for approximately $69,000. However, Metaplanet never gives up on its mission to boost its supplies.
The company has been testing multiple strategies to streamline its investments, some through Bitcoin options trading and others through strategic partnerships with market finance giants such as SBI Group.
All eyes will be on the performance of these investments in a rapidly changing market as Metaplanet prepares to employ the newly raised funds for further acquisitions.
With the goal of being one of the largest Bitcoin holders in Asia, Metaplanet promotes itself not only as an investor, but also as a leader in the integration of cryptocurrencies with conventional finance.
Featured image from Envato Elements, chart from TradingView
