7th Largest Corporate Holder of Bitcoin

The latest purchase cost Metaplanet around $132.7 million, made at an average price of $107,557 per bitcoin. The company has spent around $1.2 billion in total to buy 12,345 BTC, averaging a cost basis of $97,036 per coin.

Metaplanet CEO Simon Gerovich announced the company now holds 12,345 BTC and reiterated its commitment to a bitcoin-focused strategy for long-term shareholder value.

In just 2 weeks the Japanese firm has moved from 10th to 7th place among all corporate bitcoin holders, surpassing big companies like Coinbase, Block Inc. and Hut 8.

Metaplanet, originally a budget hotel company, has transformed into a bitcoin-treasury-focused investment firm. Its strategy is inspired by Michael Saylor’s Strategy, the largest corporate bitcoin holder with over 590,000 BTC.

Unlike Strategy, Metaplanet has chosen a more conservative approach by not using debt to buy bitcoin.

Instead, it raised funds through equity sales. Just a day before the latest bitcoin purchase the company completed a ¥74.9 billion (around $515 million) equity raise, issuing 54 million new shares backed by institutional investors like EVO FUND.

This is the largest single-day equity-based bitcoin treasury event ever recorded.

Metaplanet isn’t stopping at 12,345 BTC. It has set ambitious targets: to buy 30,000 BTC by the end of 2025, 100,000 by 2026 and 210,000 by 2027. These are part of what the company calls its “555 Million Plan” which involves raising up to $5 billion to buy more bitcoin.

The company has already made 2 big purchases—1,111 BTC a few days ago and 1,234 BTC yesterday—and has increased its bitcoin holdings by nearly 10x since January.

The bitcoin buying has had mixed effects on Metaplanet’s stock. After a 25% drop from its recent high of 1,900 JPY, the company’s stock has stabilized at around 1,560 JPY.

Some see the dip as a buying opportunity. Gerovich said he believes trading volume is the “lifeblood” of a bitcoin treasury firm, pointing out Metaplanet’s $840 million daily trading volume.

Despite the growth, the company has attracted the attention of hedge funds, some of which have shorted the stock due to concerns over shareholder dilution from the rapid equity issuance.

But Metaplanet’s decision to not use debt is seen by others as a protection against long-term financial risk.

Metaplanet’s big bet is happening during a broader bitcoin boom.

Bitcoin prices are up to $107,000, 1.5% in the day and 74% since late June 2024. Analysts point to geopolitical stability and the Fed not raising rates as the reason for the market confidence.