Metaplanet shares rise 14% after firm completes ¥1 billion Bitcoin deal

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Shares of Metaplanet, a Japanese public company known for adopting Bitcoin as its primary treasury reserve asset, surged 14% after the company announced it had completed its ¥1 billion purchase of Bitcoin (BTC), according to data from at Yahoo Finance.

According to a statement shared by Metaplanet CEO Simon Gerovich, the firm purchased 57,273 BTC, valued at ¥500 million (about $3.4 million) on August 20. The new purchase increases Metaplanet’s holdings to 360,368 BTC.

The purchase is part of Metaplanet’s strategy to expand its BTC reserves using a ¥1 billion loan from MMXX Ventures. The move comes after a ¥500 million acquisition last week.

“As disclosed in our August 8, 2024 announcement regarding the loan and purchase of 1 billion yen worth of Bitcoins, we hereby announce that we have purchased an additional 500 million yen worth of Bitcoins below. With this purchase, we have completed the purchase of ¥1 billion worth of Bitcoins,” the statement said.

Initially involved in hotel development and operations, Metaplanet has diversified its business to include consulting services in Bitcoin adoption, real estate development and investments.

The company, listed on the Tokyo Stock Exchange under the symbol 3350, has seen its shares rise since it announced its focus on Bitcoin as its main treasury reserve asset in response to Japan’s economic challenges, including high government debt and interest rates. prolonged negative real interest rates.

Metaplanet’s pivot to Bitcoin appears to have paid off. At the Bitcoin conference in Nashville last month, Gerovich said his firm was beginning to exhibit traits associated with zombie companies before shifting its strategy to Bitcoin.

The strategy transformed the company’s outlook. Gerovich stated that he eventually “realized that Bitcoin is the leading monetary asset” and would be a “big” element of Metaplanet’s treasury.

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