Metaplanet Purchased An Additional $1.2 Million Worth Of Bitcoin

Metaplanet, a Japanese-based investment firm, has recently purchased an additional $1.2 million worth of Bitcoin, bringing its total holdings to over 225.6 BTC, valued at approximately $14.5 million. This purchase comes amid a rebound in Bitcoin prices, which are nearing $65,000. The firm's strategy mirrors that of MicroStrategy, aiming to hedge against Japan's economic challenges and the depreciating yen.

The investment firm capitalized on Bitcoin’s price dip earlier this month, acquiring 42.46 BTC on July 7 for $2.5 million (400 million yen). Since unveiling its Bitcoin investment strategy on April 9, 2024, Metaplanet’s stock price has increased nearly six-fold.

Last month, the company’s board of directors authorized the purchase of Bitcoin worth 1 billion yen ($6.26 million) using funds raised through a bond issuance round. The firm's consistent investments in Bitcoin are seen as a robust hedge against economic instability and currency devaluation.

Metaplanet, a Japanese investment firm, has seen a modest 2.8% increase in its Bitcoin holdings, despite a rise in its share price. The firm has an average purchase price of $62,890 per Bitcoin and is currently the 21st-largest corporate holder of Bitcoin globally.

The Japanese yen has indeed depreciated significantly, dropping from around 104 yen per US dollar at the start of 2021 to below 130 yen by mid-2022. This depreciation has continued, contributing to a nearly 54% decline against the US dollar.

In contrast, Bitcoin has surged over 145% against the yen in the past 12 months. Currently, Bitcoin is trading at approximately $64,640, reflecting a 13.6% increase over the past week. Metaplanet's recent purchase of Bitcoin shows their confidence in its potential as a hedge against economic instability and highlights the growing trend of institutional adoption of cryptocurrencies.