Japanese early-stage investment firm Metaplanet bought $2 million worth of Bitcoin today, confirming the firm’s confidence in the leading digital asset.

‘Japanese Micro Strategy’ Boosts Its Bitcoin Reserves

IN announcement On September 10, 2024, Metaplanet announced that it had increased its cryptocurrency holdings by 38,464 BTC, purchased for approximately 300 million yen ($2 million).

The latest purchase brings Metaplanet’s total assets to 398,832, at a total cost of 3.75 billion yen ($26 million), resulting in an average price of just over $65,700 per BTC.

Bitcoin is up 3.4% in the past 24 hours, trading at $57,159 at the time of publication. Interestingly, the US Federal Reserve is expected to begin its rate-cutting cycle next week, with many expecting the injection of liquidity into the economy to benefit risk assets like bitcoin.

According to data from Google Finance, shares of Tokyo-listed Metaplanet exchanged hands at 1,101 yen ($7.7), up 5.87% in today’s trading session. The Nikkei 225 index, on the other hand, fell slightly by 0.16%.

Yesterday, Metaplanet revealed that its board will exercise the 11th series of share acquisition rights. The total proceeds from the exercise of the warrants are expected to be approximately 299.7 million yen ($2.10 million). The company noted that this proceeds will be used to purchase more BTC.

Careful observers of the cryptocurrency industry will probably remember that it was in May 2024 that Metaplanet first made its plans public embrace BTC as a strategic reserve asset for the Treasury. At the time, the company emphasized its novel “Bitcoin-first, Bitcoin-only” approach, similar to the strategy adopted by MicroStrategy.

In July 2024, Metaplanet increased its BTC holdings of 20,195, purchased for about $1.2 million at current market prices. Over the past few months, a series of Bitcoin purchases have brought Metaplanet’s total holdings to almost 400 BTC.

Following in MicroStrategy’s footsteps

Metaplanet’s decision to adopt Bitcoin as a strategic reserve asset is not a novel practice among publicly traded companies. American MicroStrategy has supported Bitcoin’s reliability in a way that no other institution has.

August 8, 2024 Michael Saylor of MicroStrategy revealed that he owns over $1 billion worth of Bitcoins and has no plans to sell them in the near future. According to the current market price, this should not be confused with MicroStrategy Bitcoin shares 226,500 BTC worth almost $13 billion.

Recently Saylor Planned that the price of Bitcoin could rise to $13 million per BTC by 2045. Considering the rationale behind this ambitious price target, Saylor said that BTC currently only accounts for about 0.1% of global capital. When that proportion rises to 7%, BTC could be worth $13 million per unit.

That said, it’s probably wise not to think too far ahead and consider some of the immediate challenges Bitcoin could face. For example, all eyes will be on the US Federal Reserve next week as fears that reducing interest rates too quickly and too drastically may adversely affect the price of BTC.

Cover image from Unsplash, chart from Tradingview