Cancel Preloader
Please enter CoinGecko Free Api Key to get this plugin works.

Metaplanet Buys Another 107 Bitcoin, Pushing Stock-BTC Ratio to 20%

 Metaplanet Buys Another 107 Bitcoin, Pushing Stock-BTC Ratio to 20%

Metaplanet has acquired an additional 107 BTC at an average price of $64,168 per bitcoin, totaling $6.9 million, funded by a loan from MMXX Ventures.

The company now holds over 500 BTC, using it as a strategic reserve to hedge against yen volatility and Japan’s debt, leading to a significant 420% increase in its stock price since starting its bitcoin investments in April.

Japanese firm Metaplanet said earlier Tuesday it had purchased an additional 107 bitcoin (BTC), worth $6.9 million at current prices, at an average price of 9.26 million yen ($64,168) per BTC.

The firm had arranged a $6.8 million loan in early August to add to its existing BTC coffers, as reported. The Tokyo-based company said it borrowed the money from shareholder British Virgin Islands-based MMXX Ventures “with the entire amount allocated for purchasing bitcoin.”

In May, Metaplanet adopted bitcoin as a strategic reserve asset and a hedge against Japan’s debt burden and the resulting volatility in the yen. It started buying bitcoin in April with initial transactions of 117.7 BTC, or $7.19 million at the time.

The firm now holds over 500 BTC and is the largest holder among publicly-traded Asian firms after Hong Kong-based Meitu, Bitcoin Treasuries data show. The holdings were accumulated at an average price 9,373,557 yen per Bitcoin, or $64,931.

Meanwhile, the move has helped bump the company’s stock prices, bringing a market capitalization to holdings ratio to joint highest of 20% on Tuesday.

(James Van Straten/CoinDesk)

Share price have increased by over 420% since the firm’s April purchases, while bitcoin is down 3%. The increase of bitcoin per share monthly continues to be accretive for shareholders.

(CoinDesk’s James Van Straten contributed insights to this story.)

Edited by Parikshit Mishra.

  

Shaurya Malwa

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *