This substantial investment in the digital asset is about 30% of the company’s current market capitalization.
Metaplanet, a Japanese company that deals in Web3 consulting, real estate development, and other services, recently announced its purchase of ¥1 billion worth of Bitcoin, which is approximately $6.25 million.
Earlier this month, Metaplanet released a post on their X page stating that there will be a shift in their business strategy as they are ready to adopt BTC as the core treasury asset of the company. They further revealed that the web3 consulting company will deposit an initial JPY 1 billion in the digital asset. This decision, according to the company, is part of their goal of leading a future where finance meets innovation.
The plan has therefore been brought to reality, as it was stated in a follow-up post that it has successfully purchased the said amount of digital assets. The tweet revealed:
“On April 22, 2024, Metaplanet completed its initial purchase of 97.85 bitcoins at an aggregate purchase price of JPY 1 billion.”
A Confidence Boost for Investors
This substantial investment in the digital asset is about 30% of the company’s current market capitalization. More so, their interest in digital assets has been a major boost to their stock price, as it spiked by almost 90% after the announcement was made, which further reveals investors’ trust and confidence in the company’s new initiative. This surge in stock price echoes Metaplanet’s goals of leading digital finance in Japan, as stated:
“Our transition to Bitcoin is a significant milestone in our mission to lead in the digital finance era and positions Metaplanet as a pioneer in the adoption of digital assets in Japan.”
Leveraging on Bitcoin as Store of Value
This transition into cryptocurrency further showcases the reputation of Bitcoin as a store of value and hedge over inflation. The move by Metaplanet also highlights the growing corporate trust in digital assets, as many other companies have also purchased BTC. Nexon, a fellow Asian company, bought $100 million (¥11.1 billion) in 2021 at an average price of approximately $58,226 (¥6,446,183).
Not only that, MicroStrategy, a US-based company, has been accumulating Bitcoin since 2020. They even recently acquired $2 billion in BTC within six months, which moved JPMorgan to warn that the buying spree of the firm could cause a possible downturn, and pose a risk to the stability of the crypto market. Moreover, the company has amassed more than 214,000 BTC after their first investment, which is about 1% of the Bitcoin supply in circulation.
The move into digital assets by corporate institutions could fuel wider acceptance of digital assets. Aside from this, Metaplanet’s venture into Bitcoin also signals a vote of confidence in the long-term potential of the coin and even the entire cryptocurrency market. Despite the regulation battle that digital assets are still encountering, a huge investment by an established company like this can further boost the confidence and trust of large investors and mainstream institutions to purchase more of the coin, which could eventually lead to the growth and global acceptance of the cryptocurrency industry.
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