Metaplanet Stock Surges 10.6% After Bitcoin Purchase

Michael Saylor, the founder and executive chairman of Strategy, a company renowned for its Bitcoin-centric approach, recently posted a tweet encouraging Metaplanet, another corporate Bitcoin buyer, to consider acquiring more Bitcoin. Saylor's message seemed to imply that the timing might be favorable for Metaplanet to make another substantial Bitcoin purchase. He pointed out Metaplanet’s recent stock price increase, which rose by approximately 10.6% to 783 JPY per share over the past 24 hours. This increase reflects the optimism of investors regarding the company’s Bitcoin-focused strategy.

Simon Gerovich, the CEO of Metaplanet, responded to Saylor’s tweet, underscoring the significance of Bitcoin for the company’s success. “Bitcoin is the key. Metaplanet unlocked,” Gerovich tweeted, suggesting that the company’s strategy of accumulating Bitcoin is vital for its future growth. Metaplanet had previously announced the acquisition of 1,004 BTC for approximately $104.3 million, raising funds through debt issuance. This purchase brought Metaplanet’s total Bitcoin holdings to 7,800 BTC, valued at $802.9 million.

On the same day, Strategy also announced the acquisition of 7,390 Bitcoins, paying roughly $764.9 billion for the purchase. This acquisition increased Strategy’s total Bitcoin holdings to 576,230 BTC, valued at $60,564,308,412. Saylor later boasted on his X account that Strategy had delivered a 4.8% BTC yield, resulting in a $2.7 billion gain in the equivalent of BTC dollars. However, Strategy and its key executives, including Chairman Saylor, CEO Phong Le, and CFO Andrew Kang, have been hit with a class action lawsuit from a group of MSTR investors. The lawsuit alleges that Strategy provided misleading statements regarding its Bitcoin investment strategy. Strategy has vowed to mount a vigorous defense against the claims outlined by the plaintiffs.

The recent developments highlight the growing interest and investment in Bitcoin by corporate entities, with both Metaplanet and Strategy making significant purchases. The stock price surge of Metaplanet following its Bitcoin acquisition underscores the positive market sentiment towards companies adopting a Bitcoin-focused strategy. However, the lawsuit against Strategy serves as a reminder of the potential risks and challenges associated with such investments. The legal battle could have implications for other companies considering similar strategies, as it raises questions about the transparency and accuracy of information provided to investors.