Metaplanet, a Tokyo-listed company known for its aggressive foray into Bitcoin (BTC), announced on Friday that it had acquired an additional 108.999 Bitcoin for 1 billion yen (US$6.5 million).
The latest acquisition brings the company’s total Bitcoin holdings to 748.502 BTC, strengthening its long-term bet on the leading cryptocurrency. But Metaplanet’s Bitcoin acquisition strategy goes beyond simple spot purchases.
Peter Chung, head of research at Presto Labs, told Decrypt that the company uses a sophisticated approach of selling put options at the same time as buying Bitcoin to generate additional yield.
“Metaplanet’s strategy allows us to target the bottom if the BTC price declines. This is a level of sophistication not often seen in other companies,” Chong said.
Friday’s acquisition follows acquisitions from earlier this month, bringing the total investment in Bitcoin to 6.9 billion yen (US$46.8 million). The company has currently accumulated 748.502 BTC, which is equivalent to approximately $45.2 million based on Bitcoin’s value of $60,420.
“Metaplanet is now one of three Asia-based listed companies, along with Nexon and Meitu, that are buying Bitcoin for the treasury,” Chong added.
He also pointed out that the company is taking advantage of the recent appreciation of the yen against the US dollar. Metaplanet first started buying up Bitcoin in April 2024.
The 13-year-old company’s management has positioned Bitcoin investment as “the most valuable thing we can do for shareholders,” and the move has seen the company’s stock price rise from an initial price of 190 yen (US$1.32) to a peak of 1,008 yen (7.01 US dollars). the US dollar). ). The company’s stock price has since fallen to $6.40, according to the data.
Asia’s answer to MicroStrategy
The company’s Bitcoin strategy mirrors that of MicroStrategy, a US-based software company known for its vast crypto holdings.
Similar to Metaplanet, MicroStrategy has adopted Bitcoin as a core asset for its finances. Metaplanet initially branded itself as “Asia’s answer to MicroStrategy” when it announced its Bitcoin treasury strategy.
The company’s Bitcoin purchase is also part of a larger movement among companies to incorporate crypto assets into their long-term investment plans. In particular, Tesla made headlines in 2021 with its US$1.5 billion Bitcoin investment, but has since sold some of its holdings in order to diversify.
Similarly, Square (now Block Inc.) has made Bitcoin a key part of its strategy, investing $50 million in 2020 and another $170 million in 2021.
Edited by Sebastian Sinclair
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