tl;dr
Japanese firm Metaplanet has been emulating MicroStrategy's Bitcoin acquisition strategy, resulting in a nearly doubled valuation since the beginning of the year. Metaplanet's stock has surged by 500% due to its consistent Bitcoin purchases, with its BTC holdings exceeding 1,000. Renowned Bitcoin Co...
Japanese firm Metaplanet has been emulating MicroStrategy's Bitcoin acquisition strategy, resulting in a nearly doubled valuation since the beginning of the year. Metaplanet's stock has surged by 500% due to its consistent Bitcoin purchases, with its BTC holdings exceeding 1,000. Renowned Bitcoin Core developer Adam Back has disclosed an investment in Metaplanet, emphasizing its market cap's amplification of its Bitcoin holdings' value.
Metaplanet has reported a staggering 155% BTC yield for the last quarter, introducing it as a primary performance indicator. If Metaplanet continues its strategy, investors may expect significant stock price appreciation in the future, especially with the potential for more corporations to add Bitcoin to their treasuries.
Earlier this year in April 2024, the Japanese firm announced its BTC strategy for the very first time. Since May, it has been purchasing Bitcoins consistently every single week while taking its BTC holdings to more than 1,000.
In the last six months, the Metaplanet stock has surged by a staggering 500% all the way to 1,800 JPY, as a result of its Bitcoin acquisition strategy. Company CEO Simon Gerovich said: "As of today, Metaplanet’s valuation gain on its Bitcoin holdings is JPY 4.27 billion ($28 million). This gain is larger than our entire market cap at the beginning of the year".
Renowned Bitcoin Core developer Adam Back has also disclosed an investment in Japan-based Metaplanet (TYO:3350). According to Back, Metaplanet’s market cap fluctuates between 5-7 times the value of its Bitcoin holdings, amplifying its treasury’s impact on market valuation. Additionally, Metaplanet generates yield by selling out-of-the-money Bitcoin options, enhancing its return strategy.
Metaplanet has recently released its Q3 Financial data reporting a BTC yield for the last quarter at a staggering 155%. The Japanese firm has introduced BTC Yield as a primary performance indicator (KPI) to gauge the effectiveness of its Bitcoin acquisition strategy and the benefits it brings to shareholders.
As per the firm, this KPI will help to enhance investor understanding of its funding strategy, particularly in scenarios where Metaplanet may choose to finance additional Bitcoin purchases by issuing common stock or convertible securities.
With Donald Trump being the next US President and resuming office in January 2025, investors see a bright future for BTC. Thus, more and more corporations are likely to add Bitcoin as part of the company’s Treasuries.