Metaplanet Boosts Bitcoin Holdings by 60.8% Year-to-Date

Metaplanet Inc., a rapidly growing company known for its Bitcoin (BTC) treasury strategy, has bolstered its financial position by acquiring additional Bitcoins during the current market correction. The company, with a market capitalization of approximately ¥175 billion, announced the purchase of an extra 150 Bitcoins.

Simon Gerovich, the CEO of Metaplanet, revealed that the company invested around $12.5 million to acquire these Bitcoins at an average price of about $83,508 per Bitcoin. This acquisition brings Metaplanet's total Bitcoin holdings to 3,200, achieving a year-to-date BTC yield of 60.8 percent.

Metaplanet's strategy involves accumulating 10,000 Bitcoins by the end of 2025 and doubling this amount by the end of the following year. The company has been leveraging debt financing, equity issuance, and operational income to achieve this goal. Metaplanet has garnered over 50,000 shareholders, with notable recommendations from Strategy, formerly MicroStrategy.

In a recent development, Metaplanet announced the issuance of ¥2 billion in zero percent ordinary bonds to fund the purchase of additional Bitcoins. This move underscores the company's commitment to expanding its Bitcoin holdings despite market fluctuations.

The increasing demand for Bitcoin from institutional investors and nation-states has had a significant impact on its price. As of the latest reports, around 170 entities hold over 3.1 million Bitcoins in their treasuries. The diminishing supply of Bitcoin, due to halvings, combined with rising demand, suggests a bullish long-term outlook for the cryptocurrency.

Bitcoin's price action is expected to mirror that of gold, which is currently in a price discovery phase after hitting a new all-time high. This parallel suggests that Bitcoin could continue to appreciate in value as it gains more acceptance as a store of value and a hedge against inflation.