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Japanese investment firm Metaplanet Inc. experienced a 15.1% increase in its shares on Tuesday after its recent Bitcoin acquisition.
In a regulatory filing, the Tokyo-listed company disclosed that it has purchased an additional 124.1 BTC at an average cost of around 14.1 million yen ($91,266) per coin, totaling $11.3 million.
This latest acquisition raises the firm’s overall holdings to 1,142.2 BTC, valued at $104.8 million.
Metaplanet’s Stock Rises 1,300 YTD
Metaplanet’s stock concluded the day at 2,295 yen, with a daily trading volume of 21.9 billion yen ($141.7 million), as reported by Futu.
The company’s stock has surged 1,334% year-to-date, significantly outperforming market indices such as the Nikkei 225, which saw a 0.5% increase on the same day.
Simon Gerovich, CEO of Metaplanet, mentioned on X that the company ranked 29th among 4,000 Japanese firms by trading value, surpassing larger competitors like Itochu and NTT.
Metaplanet ranked #29 out of 4,000 listed companies in Japan by trading value, surpassing much larger market peers such as Itochu and NTT https://t.co/mUgdytMRM6 pic.twitter.com/Xzf66g9o1r
— Simon Gerovich (@gerovich) November 19, 2024
The firm’s proactive Bitcoin acquisition strategy aligns with its May decision to adopt the cryptocurrency as a treasury reserve asset.
From October 1 to November 19, Metaplanet reported a BTC yield of 186.9%.
On Monday, the company announced the issuance of one-year ordinary bonds valued at 1.75 billion yen ($11.3 million) to finance further Bitcoin purchases, with a redemption date set for November 2025.
Wall Street institutions have also been increasing their investments in MicroStrategy amid growing interest in Bitcoin holdings.
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The prevailing macroeconomic uncertainties, marked by rising inflationary pressures and geopolitical tensions, have led corporate treasurers to consider Bitcoin as a reserve asset.
Recently, digital asset prime services platform Abra launched a service aimed at corporations looking to hold cryptocurrencies as reserve assets on their balance sheets.
MicroStrategy’s Shares Reach Record High
MicroStrategy (MSTR) shares rose 13% on Monday, achieving a record closing high after the company announced it had acquired $4.6 billion worth of Bitcoin.
The firm also revealed plans to raise an additional $1.75 billion through convertible notes to expand its cryptocurrency holdings.
The company’s stock performance has been exceptional, with an increase of over 500% in 2024, far exceeding major stocks like Microsoft, which saw an 11% rise this year.
Currently, MicroStrategy holds 331,200 BTC, purchased at an average price of $88,627.
The present value of its Bitcoin holdings positions the company strongly, with an estimated $13.7 billion in unrealized profits.
To finance its Bitcoin acquisitions, MicroStrategy intends to issue senior convertible notes with a 0% interest rate, maturing in December 2029.
These notes provide investors with the option to convert debt into equity, a strategy the company has utilized in previous fundraising efforts, including an $875 million issuance in September 2024 and another in June.
Last week, Pennsylvania State Representative Mike Cabell introduced a bill in the state’s House of Representatives that would permit up to 10 percent of the state’s funds to be allocated to Bitcoin.
The legislation, known as the Strategic Bitcoin Reserve bill, would authorize the state treasurer to invest a portion of the state General Fund, the State Investment Fund, and the Rainy Day Fund in Bitcoin.
The post Metaplanet Shares Surge 15% Following $11.3M Bitcoin Acquisition appeared first on Cryptonews.
