Metaplanet Directors Approve BTC Acquisition Plan; Company’s Stock up by Nearly 500% YTD

The directors of Tokyo-based investment and consulting firm Metaplanet Inc. have approved the company’s proposal to purchase Bitcoin worth $6.25 million using bond proceeds. Metaplanet clarified that the acquired cryptocurrency will be recorded at its acquisition cost for long-term holdings. The company’s stock has surged by almost 500% since the beginning of the year.

Valuation of Long-Term Bitcoin Holdings

The directors of the publicly listed Japanese company, Metaplanet, have authorized a plan to purchase bitcoins worth approximately $6.25 million (one billion yen). The purchase will be funded through capital raised from issuing the second series of ordinary bonds.

In a statement shared via X, Metaplanet clarified that the acquired cryptocurrency will be recorded at its acquisition cost for those intended for long-term holdings. These holdings are exempt from market value taxation assessments. The remaining bitcoin (BTC) holdings will be evaluated at their current market value every quarter.

Any resulting gains or losses will be included under non-operating income or expenses in Metaplanet’s income statement, the company said.

“While our basic policy is to hold Bitcoin for the long term, if we use Bitcoin for operations or other purposes, the corresponding Bitcoin balance will be recorded as current assets on the balance sheet,” the listed company added.

Metaplanet Stock Surges by Nearly 500% in 2024

Metaplanet’s approval to purchase BTC with bond proceeds comes more than two months after it first disclosed the plan. As reported by Bitcoin.com News, the plan to add BTC to Metaplanet’s treasury has received backing from partners and investors such as Sora Ventures, UTXO Management, and Morgan Creek Capital’s Mark Yusko.

Following the initial announcement, Metaplanet’s stock price surged by 90%. After the directors confirmed the purchase plan, it increased by almost 10%. Since the beginning of the year, the stock has risen by nearly 500%, with most of the gains realized after Metaplanet’s pivot to BTC in April.

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