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- Bitcoin drives Metaplanet to 10,000 BTC, surpassing Coinbase and marking its dominance in the market.
- Metaplanet’s stock surges 22%, boosted by its strategic Bitcoin expansion and $210 million bond issuance.
- Institutional demand for Bitcoin remains robust as Metaplanet continues purchases and ETFs attract $1.3 billion in inflows.
Bitcoin once more demonstrated its market strength as Japanese investment firm Metaplanet continues its rise to new heights. Recently, the company announced the purchase of 1,112 Bitcoin at a cost of 16.88 billion Japanese yen ($117 million), now making the total Bitcoin in the corporation’s possession an impressive 10,000 BTC. This purchase was not only able to defeat the amount of Bitcoin owned by Coinbase (9,267 BTC), but it also made Metaplanet the seventh-largest publicly traded corporation regarding its Bitcoin treasury, as per data from Bitbo.
After the announcement, Metaplanet shares rose sharply in stock and increased by more than 22% at the Tokyo Stock Exchange. The stock experienced its highest point of 1,860 Japanese yen, representing an over 417% increase to date. This increase indicates clearly the interest that has been generated around Metaplanet due to its ambitious plan to use Bitcoin as it continues to expand in the cryptocurrency market.
Source: X
Bitcoin Investment Through Bonds
On top of this Bitcoin buy, Metaplanet also announced that they would be issuing $210 million in no-interest bonds. The proceeds will be immediately invested in purchasing more Bitcoin, reflecting the company’s strategic plan to hold 210,000 BTC by the end of 2027. This action will indicate long-term intentions of Metaplanet with Bitcoin, which intends to acquire another 200,000 BTC within the next 18 months.
Metaplanet had to pay an average price of 13.9 million yen ($96,400) per BTC to acquire its 10,000 Bitcoins. This follows the company making the eighth-largest corporate Bitcoin possession a few weeks ago. Metaplanet will also be able to establish itself as a major player in the emerging Bitcoin market, as the holdings are a substantial portion of its investment strategy over the long term.
Although the Bitcoin market has been showing volatility recently, institutional demand is holding strong. The geopolitical tensions led to a 5% price decline in Bitcoin over three days, with the cryptocurrency falling to $103,000. Nevertheless, the strategy co-founder, Michael Saylor, assured that the company will keep buying BTC as it is confident in the long-term future of the cryptocurrency, irrespective of the fluctuations in the market.
Metaplanet’s Strategic Expansion
Exchange-traded funds (ETFs) that invest in BTC are also experiencing high inflows, with more than $1.3 billion being invested last week. This indicates further institutional interest in BTC as an asset class. Bitwise Asset Management CEO Hunter Horsley states that in the future, BTC will have an opportunity to be larger than the $30 trillion treasury market. Thus becoming a highly influential financial asset.
The current approach to BTC, which is being undertaken by Metaplanet, reinforced by its market stock increase. And reflects the growing popularity of BTC in financial markets. The company is more determined to invest in this digital asset as it embarks on an aggressive expansion strategy. And is in a better position to keep growing in the future.
