As per Metaplanet's announcement this Friday (Asian time), the investment firm, publicly traded in Tokyo and known for its embrace of Bitcoin, is bolstering its holdings by adding another 108,999 BTC, amounting to ¥1 billion.
Following its recent Bitcoin acquisition, Metaplanet’s total BTC allocation now amounts to $45 million. Partnering with other industry giants, the firm is seriously stacking Bitcoin.
With this latest purchase, Metaplanet’s Bitcoin holdings have reached 748,502 coins, valued approximately at $45 million at prevailing rates. Their average acquisition cost is around ¥9,304,655 per Bitcoin, translating to roughly $62,500 each.
Stacking!
This acquisition swiftly followed Metaplanet’s disclosure of a ¥1 billion Bitcoin purchase on Monday, amidst rising geopolitical conflicts, a factor experts believe strengthens Bitcoin's attractiveness as a global financial instrument.
Metaplanet, dubbed the 'MicroStrategy of Asia', has been persistently increasing its Bitcoin holdings since announcing earlier in the year that the cryptocurrency would play a central role in its treasury reserve strategy; following a playbook akin to MicroStrategy’s, using Bitcoin as protection against local currency fluctuations.
Japan's economic struggles have been persistent since 2021, and by mid-2024, their yen had depreciated nearly 50% against the US dollar.
The major depreciation of the Japanese yen mainly stems from the divergent interest rate policies between Japan, which maintains a loose monetary approach to spur growth, contrasted by the US's more assertive Federal Reserve policies.
Falling yen values have partly motivated Metaplanet's Bitcoin strategy, proving successful as their stock values surged over 400% after several rounds of BTC acquisitions.
Bitcoin has been instrumental in aiding Metaplanet’s escape from its previous state of financial stagnation sometimes referred to as a ‘zombie company’. Prior to Bitcoin-centric strategies, Metaplanet struggled with its financial footing amidst Japan's challenging economic circumstances.
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Metaplanet’s leadership looks at Bitcoin as an essential component of its treasury strategy. CEO Simon Gerovich stated that the firm is navigating the risks of currency devaluation while capitalizing on Bitcoin's long-term growth potential.
With plans to expand their Bitcoin reserve, Metaplanet projects to acquire an additional ¥7.5 billion (nearly $50.5 million) worth of Bitcoin by 2024’s end. They also plan to obtain more Bitcoin through stock acquisition rights.
Undeterred by Bitcoin's price swings.
Metaplanet, akin to MicroStrategy, has consistently increased its Bitcoin investments recently, unaffected by Bitcoin's price shifts. The cryptocurrency slipped below $59,000 Thursday, reacting to unexpected US inflation data.
Presently, according to CoinGecko, Bitcoin's price has rebounded above $60,000. However, there are warnings about potential short-term pressures as stagflation concerns reclaim headlines.
Recent statistics indicate core inflation climbed to 3.3% year-over-year, slightly surpassing predictions. Monthly, it rose by 0.2%, equating to an annual rate of 2.4%. The Labor Department's separate report revealed initial jobless claims hit 258,000 by October 5th, the highest since last August.
The uptick in inflation and stagnant labor conditions may influence the Federal Reserve's future rate cut decisions. The institution recently slashed rates by 50 basis points. Analysts note the Fed's focus now also includes tracking job growth alongside inflation trends.
The Federal Reserve is anticipated to keep modulating rates with evolving economic indicators. Predictions lean toward further cuts potentially coming in 2024, likely decreasing by 25 basis points. Reduced rates usually inflate asset values, BTC among them.
Central bank interest rates ripple into Bitcoin's market value. Lower rates can drive investments in riskier assets like Bitcoin. It’s all about HODL strategy — Metaplanet seems keen to participate.
