By Tokyo-listed investment adviser Metaplanet has made another bold move in the cryptocurrency market, significantly increasing its bitcoin holdings with a fresh investment of 1 billion yen ($6.7 million).
This latest acquisition brings the company’s total bitcoin reserves to 639.5 BTC, valued at approximately $40.6 million.
As part of a broader strategy, Metaplanet is embracing Bitcoin as a hedge against currency volatility and as a long-term asset in its portfolio.
*Metaplanet purchases additional 108.78 $BTC*
Metaplanet disclosed on Monday that it had acquired 108.8 BTC at an average price of just under 9.2 million yen per Bitcoin.
This purchase marks the firm’s continued commitment to the digital asset, having invested nearly 6 billion yen since first adopting bitcoin as a reserve asset in May 2024.
The move underscores a growing trend among Asian companies to integrate Bitcoin into their financial strategies as a safeguard against currency instability.
Metaplanet now the 2nd-largest BTC holder among Asia-listed companies
Metaplanet’s expanded Bitcoin portfolio now positions it as the second-largest Bitcoin holder among Asia-listed companies, trailing only Hong Kong’s Meitu, which holds around 941 BTC.
Both companies, however, remain far behind US-based MicroStrategy, which leads the global charts with more than 252,000 BTC.
This strategic expansion reflects Metaplanet’s confidence in the long-term potential of Bitcoin, particularly as more businesses recognize the cryptocurrency as a reliable hedge against inflation and currency depreciation.
As digital assets continue to gain traction in traditional finance, Metaplanet’s forward-looking approach to Bitcoin aligns with a broader trend of cryptocurrency adoption in corporate portfolios.
Selling BTC put options to fund further purchases
Along with buying Bitcoin, Metaplanet has begun leveraging its existing holdings by selling Bitcoin put options.
On October 3, the company sold 223 contracts, earning a premium of 23.972 BTC ($1.44 million), which it plans to reinvest in purchasing more Bitcoin.
A put option allows the holder to sell an underlying asset at a pre-agreed price, thus providing the seller, in this case, Metaplanet, with additional funds for acquiring further cryptocurrency assets.
This approach represents a calculated strategy to expand its Bitcoin portfolio without necessarily requiring further cash outflows.
Metaplanet’s use of option premiums to fund bitcoin acquisitions adds a layer of sophistication to its investment strategy, showcasing its growing role in the financial markets.
The firm is not only adding to its crypto assets but also finding innovative ways to finance this growth while managing potential downside risks.
Metaplanet’s shares surge 500% YTD
The market has responded positively to Metaplanet’s bold Bitcoin investments.
The company’s shares have soared 7.9% to 988 yen and are up over 500% year-to-date.
Investors have shown confidence in the firm’s decision to expand its bitcoin holdings, recognizing the value of its cryptocurrency strategy in the current economic environment.
Metaplanet’s success underscores the increasing relevance of digital assets in the portfolios of public companies, especially those that are forward-looking and adaptive to financial innovation.
As Metaplanet continues to develop its bitcoin investment strategy, its growth signals a broader trend of digital assets gaining mainstream acceptance.
The company’s position in Asia as a major Bitcoin holder and its innovative financial strategies could further influence the cryptocurrency landscape in the region.
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