Metaplanet buys $112 million of Bitcoin, hits 20,000 BTC milestone

Japanese firm Metaplanet has bought more Bitcoin as part of its monthly buys. The Tokyo-based company acquired 1,009 BTC for approximately 16.48 billion Yen or about $112 million. This brings its total holdings to a staggering 20,000 BTC, which is valued at over $2 billion, the company said in its latest press release.

This move positions Metaplanet as the sixth-largest corporate holder of bitcoin globally, overtaking competitors like Riot Platforms. The purchase pushes the company deeper into the “bitcoin-first” landscape, mirroring the likes of giants like MicroStrategy.

Metaplanet’s bitcoin accumulation has ramped up, as in August alone, their purchases included 463 BTC in the first week. Followed by 518 BTC, 775 BTC, and the latest 1,009 BTC throughout the month.

Aggressive expansion financing

To fuel this expansion, Metaplanet has been raising capital via share offerings, bond redemptions, and early warrant exercises. It has already issued millions of new shares and is preparing an overseas share sale to raise an estimated 130 billion Yen or ~$880 million. All this is in line with the company’s goal to have 30,000 BTC by year-end and an ambitious 210,000 BTC by 2027.

Stock volatility challenges

Since adopting its bitcoin treasury strategy, Metaplanet’s stock has skyrocketed. It has showcased robust gains this year of 138.8% growth. The growth rate vastly outpaces the Nikkei 225 and other major indices. But while returns are impressive, the stock remains volatile as investors continue to raise concerns about dilution and its ability to maintain liquidity, given its capital-intensive bitcoin-buying approach.

Source: Yahoo Finance