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Metaplanet shares soar after new Bitcoin purchase

GrafaGrafa2024/08/21 08:10
By:Mahathir Bayena

Shares of Metaplanet, a Japanese company that has adopted Bitcoin (CRYPTO:BTC) as its primary treasury reserve asset, jumped 14% after the firm announced the completion of a ¥1 billion Bitcoin acquisition.

The company, listed on the Tokyo Stock Exchange under the ticker 3350, has seen significant stock growth as it continues to expand its Bitcoin holdings.

On August 20, Metaplanet purchased an additional 57.273 BTC, valued at approximately ¥500 million ($3.4 million), bringing its total Bitcoin holdings to 360.368 BTC.

This purchase was part of a broader strategy to strengthen the company's reserves using a ¥1 billion loan from MMXX Ventures, following an initial ¥500 million Bitcoin acquisition earlier this month.

The company's focus on Bitcoin as a key treasury reserve asset is a response to Japan's ongoing economic challenges, including high government debt and prolonged negative real interest rates.

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

Metaplanet's pivot to Bitcoin has significantly altered its trajectory.

At a recent Bitcoin Conference in Nashville, CEO Simon Gerovich explained that the company was facing challenges typically associated with zombie companies before it decided to focus on Bitcoin.

According to Gerovich, this strategic shift has transformed the company's outlook, as Bitcoin is now viewed as a "great" component of Metaplanet's treasury, reinforcing its financial stability and growth prospects.

The recent surge in Metaplanet's stock underscores investor confidence in the company's strategy and its commitment to Bitcoin as a long-term asset.

At the time of reporting, Bitcoin is priced at $59,722.86.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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