Bitcoin
Metaplanet shares up by +10% after latest Bitcoin purchases, loan
Metaplanet is going the MicroStrategy way and so far, it isn’t regretting it in the least.
- Metaplanet’s BTC purchases have gone down well in the market
- More firms might soon adopt BTC as part of their treasury reserves
Metaplanet, a Japanese firm known for its aggressive Bitcoin acquisition strategy, saw its share price soar following the completion of a JPY 1 billion loan. The company has been likened to MicroStrategy in its approach, buying Bitcoin to hedge against inflation and as a store of value.
Metaplanet now holds over 360 BTC, worth around $23 million at press time.
In fact, Metaplanet’s stock has consistently surged after each BTC purchase, reflecting investor confidence in its strategy. So was the case at press time too, with the same up by +10% in the last 5 days on the back of this news.
Source: Google
The company’s interest in the cryptocurrency isn’t limited to buying the asset either. For instance, just last month, it joined the ‘Bitcoin for Corporations’ initiative, in support of other firms that view Bitcoin as a viable treasury reserve asset.
Before that, the firm announced a JPY 10.08 billion Gratis Allotment of Stock Acquisition Rights to facilitate the purchase of more BTC.
Similarly, MicroStrategy’s shares have also seen notable gains following their Bitcoin acquisitions, demonstrating the market’s positive response to such moves.
First of many?
Needless to say, this has led to speculation that other companies may soon follow suit, leveraging Bitcoin as a strategic asset to protect against economic volatility and capitalize on potential long-term value appreciation.
The success of companies like Metaplanet and MicroStrategy could set a precedent though, encouraging more firms to incorporate Bitcoin into their treasury reserves. As Bitcoin continues to be recognized as a valuable asset, the number of corporations adopting this strategy may increase, potentially driving further demand and appreciation in the cryptocurrency’s value.
This growing trend could reshape corporate finance, with Bitcoin becoming a standard part of treasury management for companies looking to hedge against macroeconomic uncertainties. However, this approach also carries risks, including exposure to Bitcoin’s inherent volatility, which companies will need to carefully consider before adopting such a strategy.
