Bitcoin News Today: Bitcoin's Corporate Champion: Metaplanet's $93M Bet on the Future

Metaplanet Inc. has added 775 Bitcoin to its treasury holdings, bringing its total Bitcoin reserve to 18,888 BTC, with an aggregate cost basis of $1.94 billion. The company executed the latest purchase at an average price of $120,006 per Bitcoin, spending $93 million in the process. This acquisition further positions the Tokyo-listed firm as one of the largest corporate holders of Bitcoin globally [1].

The company’s Bitcoin treasury strategy has been a central pillar of its transformation since early 2024. Originally founded in 2010 as Red Planet Japan and operating a hotel chain, Metaplanet faced significant financial losses during the COVID-19 pandemic. The company has since shifted its focus to acquiring and holding Bitcoin as a strategic reserve, a model popularized by Michael Saylor’s Strategy. Simon Gerovich, Metaplanet’s president, has consistently highlighted the firm’s commitment to this approach, recently expressing confidence in the long-term potential despite recent Bitcoin price fluctuations [1].

According to Hank Huang, CEO of Asia-focused quantitative trading firm Kronos Research, Metaplanet’s move is part of a broader trend of corporate entities using Bitcoin as a strategic asset. Huang noted that such large-scale corporate treasury purchases could lead to increased short-term volatility due to potential liquidity tightening, but also serve as a hedge against fiat currencies. “What gives us conviction is the foundation we are building,” Gerovich remarked in response to Bitcoin’s recent pullback to just over $115,000 [1].

The purchase has resulted in an unrealized gain of nearly 12% on Metaplanet’s Bitcoin holdings, as the current market value of its reserve stands at approximately $2.17 billion. Despite this positive valuation, the company’s stock has underperformed, remaining down roughly 50% from its all-time high set in June. The firm also announced a $3.7 billion stock raise earlier this month to fund further Bitcoin acquisitions [2].

Huang emphasized the risks associated with corporate Bitcoin treasuries, primarily volatility in Bitcoin’s price, which could strain balance sheets and affect investor confidence. Equity dilution is also a concern if share-funded purchases do not result in simultaneous upward momentum in both Bitcoin and the company’s stock. However, Metaplanet has shown a clear commitment to maintaining and expanding its Bitcoin holdings, even as it navigates market uncertainty [1].

Metaplanet’s continued accumulation places it among a growing list of institutional investors and governments adopting Bitcoin as part of their asset portfolios. While it ranks 13th globally in Bitcoin holdings, the firm’s recent consistent buying suggests it may move up the list in the near term. Strategy, the original Bitcoin treasury company led by Michael Saylor, remains the largest holder, with a cumulative Bitcoin cost basis of $46.15 billion and a total reserve of 629,376 BTC [2].

Source: [1] Metaplanet's Bitcoin Treasury Swells to 18,888 BTC With ... (https://finance.yahoo.com/news/metaplanet-bitcoin-treasury-swells-18-131603838.html) [2] Metaplanet Buys 775 BTC, Now Holds $1.94 Billion In Bitcoin (https://bitcoinist.com/metaplanet-buys-775-btc-bitcoin-1-94-billion/)