Metaplanet, a publicly traded Japanese company, announced He had purchased 38.6 bitcoin for 300 million yen (approximately $2.2 million), bringing his total bitcoin holdings to 398.8 btc.
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BREAKING NEWS: Japanese public company Metaplanet buys another ¥300 million of shares twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1833355810719584660?ref_src=twsrc%5Etfw”>September 10, 2024
This latest bitcoin acquisition comes after Metaplanet announced in August that it would raise 10.08 billion yen to purchase more bitcoin, part of its broader corporate strategy to allocate funds to bitcoin.
Metaplanet first adopted a pro-bitcoin investment policy earlier this year and has been steadily accumulating bitcoin. The company now holds a total of 398.8 Bitcoins purchased for approximately 3.75 billion yen (about $27.6 million).
Metaplanet's creation of a bitcoin treasury mimics the action plan of MicroStrategy, which has raised debt to buy bitcoin. Publicly traded companies seem to have discovered a model for acquiring bitcoin.
Other companies pursuing this strategy include Marathon Digital Holdings, which recently raised $250 million through a convertible notes offering to buy more bitcoin, and Semler Scientific, which similarly announced plans to raise more money to buy more bitcoin.
Companies can take advantage of bitcoin's appreciation potential by borrowing fiat currency at low interest rates to purchase bitcoin. This allows public companies to gain exposure to bitcoin without liquidating existing assets.
Disclaimer: bitcoin Magazine is wholly owned by btc Inc., which also operates UTXO Managementa regulated capital allocator focused on the digital asset industry and invested in Metaplanet. UTXO invests in a variety of bitcoin businesses and holds significant stakes in digital assets.
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