Metaplanet Doubles Down on Bitcoin, Acquires $11.3 Million Worth, Now Holds Over 1,100 BTC

In a bold move that underscores its aggressive Bitcoin strategy, Metaplanet, a publicly listed Japanese company, has expanded its Bitcoin holdings by 124 BTC, pushing its total to over 1,100 BTC. On November 19, the company announced the acquisition of 124.117 BTC for 1.75 billion yen (approximately $11.33 million). With this latest purchase, Metaplanet now holds 1,142.87 BTC, worth around $104.54 million at current market prices.

A Strategic Pivot Toward Bitcoin

Metaplanet's pivot to Bitcoin as its core reserve asset has been nothing short of dramatic. Since making Bitcoin the cornerstone of its investment strategy, the company has been steadily accumulating the cryptocurrency, with a total average purchase price of about 9.96 million yen per Bitcoin.

Bitcoin’s volatility hasn’t deterred Metaplanet, which tracks its Bitcoin performance through a key metric it calls BTC Yield. For the period from July 1 to September 30, Metaplanet reported a BTC yield of 41.7%. But the real story is the surge in its BTC yield between October 1 and November 19, which soared to an astonishing 186.9%. This sharp uptick highlights the success of the company’s Bitcoin acquisition strategy, which has been highly rewarding in recent months.

Modeling MicroStrategy’s Bitcoin Strategy

Metaplanet’s strategy closely mirrors that of MicroStrategy, the U.S.-based business intelligence firm that holds the largest corporate Bitcoin reserve in the world. Like MicroStrategy, Metaplanet has embraced the idea of using Bitcoin as a long-term store of value and a hedge against inflation. Due to this aggressive acquisition strategy, Metaplanet has earned the nickname “Asia’s MicroStrategy” within cryptocurrency and investment circles.

The comparison to MicroStrategy doesn’t end with their shared Bitcoin strategy. Metaplanet has also adopted a similar method of financing its Bitcoin purchases. The latest acquisition was funded by issuing 1.75 billion yen in bonds, furthering its parallel with MicroStrategy’s use of debt instruments to leverage Bitcoin exposure.

Real Estate-Backed Financing

To fund the Bitcoin purchase, Metaplanet issued bonds on November 18, 2024, through its third series of ordinary bonds. The bonds carry an extremely low 0.36% annual interest rate and are fully guaranteed by Metaplanet's president and representative director, Simon Gerovich. The bonds are secured by a first-priority mortgage on the Hotel Royal Oak Gotanda, a property owned by Metaplanet’s subsidiary, Wen Tokyo Inc. The bonds are set to mature on November 17, 2025.

This strategy of using real estate-backed debt to fund Bitcoin acquisitions is a powerful financial tool that allows Metaplanet to grow its crypto holdings while maintaining favorable borrowing terms. It also speaks to the firm’s confidence in Bitcoin’s future value and its ability to manage risks associated with such high-stakes investments.

Stock Market Reaction and Performance

Metaplanet’s aggressive Bitcoin strategy is paying off in the stock market as well. After announcing the bond issuance on November 18, Metaplanet's shares on the Tokyo Stock Exchange rose by 5%. The stock price continued to climb, jumping an additional 14% following the Bitcoin purchase.

The company’s stock performance in 2024 has been nothing short of remarkable. Metaplanet is currently the best-performing Japanese stock of the year, with its share price surging by an incredible 1,017% year-to-date, according to data from TradingView.

Looking Ahead: Metaplanet’s Bitcoin Strategy

Metaplanet’s latest Bitcoin acquisition is part of a broader strategy to continue building its Bitcoin reserves. With the value of Bitcoin continuing to rise in recent months, Metaplanet’s strategy appears to be paying off handsomely. The company has made it clear that it sees Bitcoin not just as a speculative asset but as a core part of its long-term growth and financial stability.

As Metaplanet continues to accumulate Bitcoin and leverage low-cost debt to fund its purchases, it will likely remain a key player to watch in both the cryptocurrency and traditional financial sectors. With its bold strategy and impressive stock market performance, Metaplanet is positioning itself as a leader in the growing trend of institutional Bitcoin adoption.