Japanese company, Metaplanet has acquired ¥500 million ($3.4 million) in Bitcoin, increasing its total holdings to ¥3.45 billion.
Metaplanet shared the news on August 20, stating it had bought 57.273 BTC at an average cost of ¥8,730,117 (about $59,600) per Bitcoin. The company’s total Bitcoin holdings now reach 360.368 BTC, valued at $21.9 million at the current rate.
Metaplanet Wants to Explore New Avenues For Increasing Its Bitcoin Holdings
This purchase concludes Metaplanet’s goal of buying ¥1 billion in Bitcoin for its company’s reserves with a loan obtained earlier this month. This follows shortly after it unveiled plans to gather ¥10.08 billion via a stock rights offering to enhance its Bitcoin reserves.
Metaplanet revealed its decision to use Bitcoin as its main reserve asset a few months ago. The firm stated that this smart move is not just about accepting digital money but also about leading a future where innovation meets finance. The value of its stock has grown by over 500% since that time.
The company shared it had invested 1 billion JPY (about $6.56 million) into the asset, which made up nearly 50% of its total market worth at the time.
Dylan LeClair, Metaplanet’s Director of Bitcoin Strategy, stated that the company thinks this is the most valuable thing it can do for its shareholders. He added that Metaplanet would look into various ways to buy more Bitcoin, including possible changes in the capital markets that could increase value.
The company noted that its way of buying Bitcoin is similar to that of U.S. software firm MicroStrategy, which has accumulated over $13 billion in BTC led by its chairman, Michael Saylor.
Saylor, who became a strong believer in Bitcoin, predicts that its market cap will reach $280 trillion by 2045.
Metaplanet Plans To Raise ¥10.08 Billion Via A Stock Rights Offering
Two weeks ago, Metaplanet said it would give its 11th series of stock purchase rights to all common shareholders. This decision was made in a board meeting and it aims to raise about 10 billion Japanese yen, or around $69.13 million.
Of this, 8.5 billion yen (about $58.76 million) will be invested in Bitcoin. Shareholders will receive these rights from September 5, and the allotment will begin on September 6.
Recently, the Japanese stock market experienced its biggest single-day fall since 1987. This happened after the Bank of Japan increased interest rates on short-term bonds on July 31.
The change from 0% to 0.25% caused a big sell-off in cryptocurrencies, making Ether and BTC drop by about 26%, and 18% respectively.
On July 8, Metaplanet bought 42.5 BTC for $2.5 million using 400 million yen. After the acquisition, Metaplanet had 203.7 BTC, purchased at an average rate of around 10 million yen, or $62,000 each.
