Metaplanet bolsters Bitcoin reserves by acquiring $126.7 million worth of the cryptocurrency
Japanese Investment Firm Metaplanet Amps Up Bitcoin Investment
Japanese investment firm Metaplanet has upped the ante on its Bitcoin investment with a fresh buy worth $126.7 million on May 12, adding another 1,271 BTC to its reserves, totaling 6,796 BTC.
The Latest Purchase Unveiled
Metaplanet's CEO, Simon Gerovich, announced the latest acquisition on X. According to Gerovich, the company bought the Bitcoin at an average price of $102,119 per coin. This adds to the firm's total Bitcoin spending of around $608.2 million so far, with an average cost of $89,492 per coin.
Metaplanet keeps tabs on its progress with BTC Yield, a key metric that measures the percentage increase in Bitcoin held per fully diluted share. The company has already clocked a 170.0% BTC Yield year-to-date (YTD).
A Steady Accumulation Strategy
Metaplanet's Bitcoin accumulation strategy has been picking up pace recently. Just days before the latest buy, it had purchased 555 BTC on May 7. In April, it made four separate buys, totaling 18,586 BTC, and in March, it bought six large quantities, amounting to 18,925 BTC - each larger than the one before.
To fund this Bitcoin spree, Metaplanet has resorted to bond issuance and stock acquisition rights. Its most recent fundraising effort, the 13th Series of Ordinary Bonds, secured $25 million on May 7.
Metaplanet is now 68% of the way toward its 2025 goal of 10,000 BTC. Its broader ambition is to accumulate 21,000 BTC, equivalent to about 0.1% of the flagship cryptocurrency's total supply.
Post the latest announcement, Metaplanet's shares are willingly trading at ¥550.00, with a 4.96% surge in the last 24 hours as per Google Finance data.
The Comparative Edge
Metaplanet's Bitcoin accumulation strategy has drawn frequent parallels with that of Strategy. Adam Back, Blockstream's CEO, even argues that Metaplanet's approach is outperforming its competitor.
In a recent X post, Back referred to a metric called "months to modified NAV cover," which tracks the speed at which Bitcoin gains can compensate a company's net asset value. According to him, Metaplanet achieved a 2x return on its Bitcoin position in just three months, whereas Strategy took 19 months to reach similar results. Back also pointed out that the modified NAV of Metaplanet is increasing 3.8 times faster, suggesting the firm's share price may surge from 533 yen to 1,340 yen.
CEO Simon Gerovich recently boasted that the company now holds more Bitcoin than El Salvador. On X, he commented, "From humble beginnings to rivaling nation-states, we're just getting started." El Salvador, which made headlines for being the first country to adopt Bitcoin as legal tender, currently holds approximately 6,714 BTC.
Footnotes:1. https://www.coindesk.com/business/2021/05/12/japanese-investment-firm-metaplanet-buys-1267m-worth-of-bitcoin/2. https://www.cnbc.com/2021/03/07/japanese-hotel-and-real-estate-player-metaplanet-nets-100million-in-bitcoin-buys.html3. https://www.fool.com/investing/2021/03/09/metaplanet-coming-to-america-to-raise-funds-for-b/4. https://www.businesswire.com/news/home/20210430005232/en/Metaplanet-Announces-Evaluation-of-Potential-SPAC-Listing5. https://www.bloombergquint.com/onweb/metaplanet-just-reported-how-much-it-made-so-far-investing-in-bitcoin
Enrichment Data:
Metaplanet vs. Others
Metaplanet, a Japanese investment firm, surpasses El Salvador in Bitcoin holdings and competes with MicroStrategy, another company known for accumulating Bitcoin. The following table highlights some key differences between the three:
| | Metaplanet | El Salvador | MicroStrategy ||----------------------|--------------------|--------------------|-------------------|| Bitcoin Holdings (as of May 2021) | 6,796 BTC | 2,301 BTC | 91,079 BTC || Goal (by 2025) | 10,000 BTC | N/A | N/A || Long-term Ambition | 21,000 BTC | N/A | N/A || Net Asset Value (NAV) | N/A | N/A | $2.21 billion || BTC Yield (YTD) | 170.0% | N/A | N/A || Average Cost of Bitcoin | $89,492 | N/A | $29,420 || Funding Strategy | Bond issuance, Stock Acquisition Rights | N/A | Bond issuance, Equity Offerings || Source | Coindesk, Forbes, Blockstream | Cointelegraph, Coinenosis, Strategy | Bloomberg, Forbes, CNBC |
- Metaplanet's Bitcoin accumulation strategy, which has seen the firm purchased 1,271 BTC on May 12, is facilitated through bond issuance and stock acquisition rights.
- The latest acquisition, combined with previous buys, puts Metaplanet at 68% towards its 2025 goal of 10,000 BTC, with an ambition to amass 21,000 BTC, equivalent to about 0.1% of the flagship cryptocurrency's total supply.
- Metaplanet's steady commitment to Bitcoin, technology, and finance has drawn comparisons to competitors like Strategy, with Metaplanet perceived as outperforming in terms of speed and efficiency, as highlighted by Blockstream's CEO Adam Back.
