Japanese investment firm Metaplanet has bought another ¥500 million ($3.4 million) worth of bitcoin. Following the recent purchase, the company’s bitcoin holdings have increased to 303, bought for ¥2.95 billion.
Metaplanet has been having plans to increase its bitcoin holdings. It was no surprise to the Bitcoin community when the company took this latest step to stock up its crypto accounts with more Bitcoin.
Metaplanet Now Has 303 Bitcoins In Its Reserve
The company initially announced on August 6th that it will go through stock rights offering to expand its bitcoin offering. Metaplanet plans to raise ¥10.08 billion for the purchase.
The firm also secured a ¥1 billion loan to add more Bitcoin to its reserve. Metaplanet has been actively pursuing a bitcoin accumulation strategy this year to strengthen its balance sheet.
The company believes that the future is bright for Bitcoin and that the crypt asset will likely appreciate.
Metaplanet is hedging against yen depreciation, believing that Bitcoin will have another bull run. The crypto market is having a slight downturn, but Metaplanet believes the market will soon react positively.
Metaplanet purchased 57.1 BTC with the ¥500, which means each Bitcoin was bought for about $8.8 million. It also shows that the company’s 303 Bitcoins were bought for ¥8.8 million per Bitcoin.
Metaplanet Wants To Expand Bitcoin Adoption In Japan
This strategy is similar to Microstrategy’s bitcoin accumulation strategy where it aggressively utilizes equity and debt to grow its Bitcoin reserves. The strategy has also impacted Metaplanet’s stock positively.
Since the announcement of the Bitcoin acquisition in April, its stock has surged despite the recent drop from year-highs. The company says it wants to position itself as a publicly traded proxy to expand Bitcoin adoption in Japan.
Other companies like Semler Scientific, Marathon Digital Holdings, and Microstrategy are also looking to buy more Bitcoin by raising funds in the debt market. They want to ride the Bitcoin adoption curve, hoping to spur an increased adoption of Bitcoin.
They are taking advantage of the cheap lending rates of the fiat system to buy more Bitcoin hoping that the price of the crypto asset will surge noticeably in the future.
The crypto market has seen a slight dip after having a promising start to the year. While the dip is discouraging some individual investors, institutional investors are looking to accumulate even more Bitcoin. Metaplanet plans to add more Bitcoins to its already impressive reserve.
