Key Points
- Metaplanet, a Japanese investment firm, has acquired additional Bitcoin, raising their total reserves to 639.50 BTC.
- The firm also made a Bitcoin put options transaction deal with Singaporean firm QCP Capital.
Metaplanet, originally a budget hotel operator in Japan, has recently increased its Bitcoin reserves. The firm invested an additional $6.7 million into Bitcoin, bringing their total reserves to 639.50 BTC.
Increasing Bitcoin Reserves
On October 7, Metaplanet announced the purchase of an additional ¥1 billion worth of Bitcoin (BTC), which is equivalent to 108.786 BTC. This marks the second time in the same month that the firm has made such a purchase for their cryptocurrency reserves.
Following this recent purchase, the Tokyo-based firm’s Bitcoin reserves now stand at 639.50 BTC, which is valued at approximately $40.54 million based on current market prices.
Impact on Metaplanet’s Stocks
Post the announcement of the Bitcoin purchase, the firm’s stocks experienced a surge. According to data from Google Finance, Metaplanet’s stocks rose by over 10%.
Earlier in the month, on October 1, Metaplanet made a similar purchase of ¥1 billion worth of Bitcoin. This acquisition took the firm’s Bitcoin reserves above 500 BTC for the first time in their cryptocurrency trading history.
Furthermore, Metaplanet disclosed on October 3 that it had entered into a Bitcoin put options transactions deal with QCP Capital, a Singaporean digital asset trading firm. As part of this deal, Metaplanet sold 223 contracts worth $62,000 put options expiring on December 27, 2024, to QCP Capital. This sale earned Metaplanet a profit of 23.97 BTC in option premium.
Earlier this year, Metaplanet had announced its plans to start buying Bitcoin as a strategy to combat economic pressures in Japan. The country has been grappling with high government debt levels, extended periods of negative real interest rates, and a weakening currency since May 2024.
Metaplanet isn’t the only Japanese firm to turn to cryptocurrency for sustaining its profits. A survey conducted in June by Nomura and Laser Digital revealed that over 500 investment managers in Japan were considering investing in crypto. The survey also discovered that about half of the respondents were open to using stablecoins for settlements and daily transactions.