Japan-based early-stage investment firm MetaPlanet has continued its Bitcoin (BTC) purchases. the company announced Today it bought 619.7 BTC for $61 million – including fees and other expenses – making it the firm’s largest bitcoin acquisition to date.
Metaplanet Increases BTC Holdings to 1,762
The crypto market’s recent decline from its all-time high (ATH) doesn’t bother MetaPlanet, as the Tokyo-listed firm made its biggest BTC purchase to date, worth $61 million at an average price of around $96,000. Bought 619.7 BTC worth.
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To recall, Metaplanet started buying BTC earlier this year with the purchase of 97.9 BTC in May. Since then, the company has bought BTC every month, except for September, and crossed over 1,000 BTC milestone in November. The latest acquisition pushes Metaplanet’s total bitcoin holdings to 1,762, purchased at an average price of $75,600 per BTC.
Notably, this $61 million purchase is nearly double the value of Metaplanet’s previous largest acquisition, which took place in November and was valued at close to $30 million. The company’s consistent BTC accumulation has earned it the nickname “Asia’s MicroStrategy,” a reference to the US-based business intelligence firm known for its aggressive Bitcoin buying strategy.
It’s worth highlighting that today’s BTC purchases come a week after Metaplanet raised $60.6 million through two tranches of bond issuance aimed at “accelerating BTC purchases.” Metaplanet’s latest purchase makes its BTC reserves the 12th largest among publicly listed firms globally.
According to Metaplanet’s official announcement, its BTC yield – a proprietary metric used to measure the performance of its Bitcoin acquisition strategy – was 310% from October 1 to December 23. The firm emphasized that the strategy is “designed to be acceptable to shareholders.”
Despite today’s significant BTC buying, Metaplanet’s stock price saw little movement, closing at $22.5, down 0.98% for the day. However, on a year-to-date basis, the company’s stock is up an impressive 1,982%, indicating the long-term benefits of its Bitcoin-focused strategy.
Bitcoin Supply Crunch to Accelerate Adoption?
With the total maximum supply of Bitcoin limited to 21 million, the digital asset has cemented its reputation as an inflation-resistant store of value. A fresh one Report highlights that the supply of BTC on crypto exchanges has hit multi-year lows, indicating that holders are rapidly withdrawing BTC from exchanges, reducing circulating supply and potentially are raising prices.
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The scarcity of Bitcoin has set off an unofficial race among corporations – and possibly governments. For example, Bitcoin mining firm Hut 8 recently bought 990 BTC for $100 million, increasing its total holdings to over 10,000 BTC. Similarly, Mara, another Bitcoin mining company, acquired 703 BTC earlier this month, bringing its total holdings to 34,794 BTC.
Speculation surrounding a potential US strategic bitcoin reserve is further strength BTC’s supply crunch narrative, which could accelerate its adoption. At press time, BTC is trading at $94,003, down 1.5% in the last 24 hours.
Featured images from Unsplash, Yahoo! Finance and Tradingview.com
