Buying Bitcoin Paid Off for Metaplanet as Shares Jump Over 800% YTD

Japanese investment firm Metaplanet has been on a massive bitcoin buying spree. Earlier this week, the firm announced it had added 21,877 bitcoins to its holdings, bringing its total holdings to 225,611 bitcoins.

At the current price, the Tokyo-listed company now holds around $14.8 million worth of bitcoin. This investment strategy appears to have paid off as Metaplanet has seen its shares soar this year, with a big boost in May after the company announced it was leveraging bitcoin.

Metaplanet’s Bitcoin Strategy Is Paying Off

After a series of acquisitions, Metaplanet It has cemented its position as the 21st largest company in terms of Bitcoin ownership worldwide, according to Queen Gecko.

The market response to the news appears to have been overwhelmingly positive. According to data compiled by Google Finance, Metaplanet shares — which trade under the ticker symbol 3550 on the Tokyo Stock Exchange — hiking Amazon shares have surged 60% to 145 yen over the past five days. In the past 24 hours alone, the shares have risen about 16%, taking the year-to-date gain to more than 800%.

In May of this year, the company first announced that it would hold Bitcoin as a strategic reserve asset for its treasury.

However, data from Bitcointreasuries.net open Metaplanet’s initial Bitcoin acquisition occurred on April 23 when it purchased 97.85 BTC. Subsequent purchases included 19.87 BTC on May 10, 23,351 BTC on June 11, 20,195 BTC on July 1, 42.46 BTC on July 8, and the most recent acquisition of 21,877 BTC on July 16.

Metaplanet’s Ambitious Transformation in Bitcoin

Metaplanet’s strategy is reminiscent of MicroStrategy’s Bitcoin accumulation tactics.

Known as the “Little Asia Strategy,” the firm often follows the same investment strategies as the U.S. business intelligence firm. By funding its bitcoin purchases through bond sales, MetaPlanet’s approach has highlighted the growing trend of institutional adoption of bitcoin.

It is important to note that Japan’s ongoing economic issues, including large government debt, persistent negative real interest rates, and a persistently weak yen, have influenced Metaplanet’s move to invest in Bitcoin.

The company had previously He said They view crypto assets as “fundamentally superior” to any other forms of political currency, traditional stores of value and investment, and all other crypto assets/securities.

“Bitcoin is a synthetic digital cash commodity that is extremely scarce, and has no central authority. Bitcoin’s monetary policy is completely fixed until the year 2140, which sets it apart from monetary metals and competing crypto projects that operate at the whims of centralized development teams. There will only be 21 million bitcoins.”