As a seasoned analyst with over two decades of experience in the financial markets, I find Metaplanet’s strategic approach to Bitcoin investment quite intriguing and impressive. Having witnessed the rise and fall of numerous tech companies and investment trends during my career, I can confidently say that Metaplanet is treading a path less traveled, yet one that could potentially yield significant returns for its shareholders.
The publicly-traded Japanese company, Metaplanet, has increased its Bitcoin reserves, now surpassing the 1,100 Bitcoin mark.
On November 19th, Metplanet disclosed their purchase of 124.117 Bitcoin (BTC) for about 1.75 billion yen or equivalent to around $11.33 million USD. This newest acquisition brings their total Bitcoin holdings to approximately 1,142.87 BTC, which is valued at roughly $104.54 million at present market prices.
After shifting towards Bitcoin as their primary reserve asset, the company has consistently purchased Bitcoin on average for approximately 9,955,874 yen each Bitcoin.
As reported by the firm, from July 1st to September 30th, the company’s Bitcoin return (or yield) was at 41.7%. But, from October 1st to November 19th, the company’s Bitcoin return significantly increased to 186.9%.
On Metaplanet, they evaluate their Bitcoin procurement approach, recently implemented, by focusing on Bitcoin’s return on investment (yield), similar to MicroStrategy, a major U.S. company with the most significant Bitcoin holdings, using this metric as well.
On November 18, 2024, we secured funds for our recent purchase by selling 1.75 billion yen worth of bonds to EVO FUND. These bonds belong to Metaplanet’s third series of ordinary bonds and offer an annual interest rate of 0.36%. The company’s president and representative director, Simon Gerovich, personally guarantees these bonds.
The maturity date for these assets is November 17, 2025. Repayment is guaranteed by a primary mortgage held on the Hotel Royal Oak Gotanda, a building owned by one of Metaplanet’s subordinates, Wen Tokyo Inc.
This action supports the company’s ambitious plan to amass Bitcoin, utilizing property-secured financing to broaden its holdings under advantageous conditions. Known as “Asia’s MicroStrategy,” this Tokyo-based firm has adopted a strategy that resembles MicroStrategy’s approach by employing debt instruments to finance substantial Bitcoin purchases.
On the Tokyo Stock Exchange, Metaplanet’s stocks have surged due to their Bitcoin approach, with a 5% increase after revealing their 3rd Series of Ordinary Bonds, according to Google Finance data. This growth escalated further to 14% after their Bitcoin acquisition.
Remarkably, among all Japanese stocks so far this year, Metaplanet stands out with an impressive year-on-year growth of around 1017%, according to tradingview statistics.
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2024-11-19 12:21