cryptopolitan.com
Japanese firm Metaplanet has announced a strategy to raise 10 billion yen ($69.13 million). Out of this, 8.5 billion ($58.76 million) is set aside for Bitcoin purchases.
The decision was shared with the community via a notice regarding the gratis allotment of stock acquisition rights. According to the notice, all shareholders will receive the rights on September 5.
Metaplanet’s bold $58.76 million Bitcoin strategy
The notice stated the firm’s bold decision to invest in Bitcoin despite the current volatile condition. The overall crypto market nosedived alongside Japanese stock market’s worst plunge since 1987.
The unexpected downfall was triggered after the Bank of Japan announced the rate hike from 0% to 0.25%. This decision had a cascading effect on the crypto and stock markets, where Bitcoin fell as low as $49,000.
This new strategy will help the firm accumulate Bitcoin considerably as part of its long term strategy. Metaplanet currently has 246 Bitcoin in its stash. The current value of its holdings stands at $14 million as Bitcoin reclaims the $56,000 level.
Metaplanet’s recent Bitcoin buying spree
Metaplanet has been following MicroStrategy’s plan for accumulating Bitcoin despite its price fluctuations. The company began its buying spree on April 22, 2024. This is when they bought 97.8 BTC for 1 billion yen.
Following this, the company has made six more purchases, with the latest purchase made on July 22, 2024. The company accumulated 20.3 BTC for 200 million yen on that day.
The decision by Metaplanet to purchase Bitcoin comes after a planned exit from its hotel business. The firm envisions changing its hotel department to cater to Bitcoin believers.
Metaplent’s recent revelation of its new Bitcoin investment strategy comes as the crypto market has reclaimed the $2 trillion market cap. Bitcoin and Ethereum have shown modest price recovery in the range of 3-5%, with Solana surging double digits by 11%.