Metaplanet Stock Soars Past Big Tech: Bitcoin Buy Plan Fuels 2024 Performance
Forget Tesla, Apple and the Big Techs. Metaplanet is the best performing stock in 2024 so far and its Bitcoin buying plan is paying off. l Credit: Jakub Porzycki/NurPhoto via Getty Images
Key Takeaways
- Metaplanet has significantly outperformed tech giants like Tesla, Apple, and Amazon.
- Metaplanet’s pivot to Bitcoin investments has catalyzed a staggering increase in its stock price and market capitalization.
- How does it compare to MicroStrategy?
Japanese investment firm Metaplanet is defying expectations, outperforming tech giants like Tesla, Nvidia, and Apple with its aggressive Bitcoin buying strategy. The company’s stock price has skyrocketed this year, turning heads in the global financial market.
Metaplanet’s rapid ascent and its move to allocate substantial funds to Bitcoin have positioned it as a potential challenger to MicroStrategy’s dominance in the corporate Bitcoin investment space.
Metaplanet Overshadows Big Tech Stocks
Metaplanet’s stock, trading under the ticker 3350 on the Tokyo Stock Exchange, has emerged as one of the best-performing stocks in 2024, surpassing industry giants like Tesla and Apple. Often referred to as the “Asian MicroStrategy,” Metaplanet’s shares have surged by 364% to 743.00 yen per share since the start of the year, with a 16% increase in the last 24 hours alone.
Since pivoting from real estate to Bitcoin investments in April 2024, Metaplanet’s stock price and market cap have surged by 1,275% from July 23, 2023, to July 23, 2024.
Excluding the recent dip due to fears of a US recession causing a global market downturn, Metaplanet’s stock had soared over 900% by July 22, 2024, outpacing the world’s largest companies.
For comparison, Tesla’s stock has dipped by 19% year-to-date, Nvidia has gained 104%, Apple has increased by 12%, and Amazon has risen by 8%. The world’s largest company by market capitalization, Saudi Aramco, has fallen by 17% since the beginning of 2024.
Mirroring the investment strategies of American business intelligence firm MicroStrategy, Metaplanet finances its Bitcoin purchases through bond sales, underscoring the growing trend of institutional BTC adoption.
What Boosted 3350 Share Price?
Metaplanet recently launched a new strategic initiative to fund additional Bitcoin acquisitions. The company will offer common shareholders up to 10 billion yen (approximately $69 million) in unlisted stock acquisition rights, with 8.5 billion yen ($59 million) allocated for Bitcoin investments. Shareholders will receive one stock acquisition right per share on Sept. 5, 2024.
Prior to the stock offering, Metaplanet acquired 245 BTC worth $13.39 million. The company shared that the planned $59 million investment would raise its holdings to over 1,200 BTC, based on current prices of around $55,000 per BTC.
Despite a market decline, Metaplanet remains confident in Bitcoin, having made multiple purchases in July, totaling around $6.34 million for 104.925 BTC at varying prices.
As of Aug. 7, 2024, the company ranks as the 20th largest Bitcoin holder , holding 245 BTC valued at $14 million. This marks a decrease from the initial $15.7 million entry value when it began accumulating BTC.
Metaplanet vs. MicroStrategy
Metaplanet is rapidly earning the title of “Asia’s MicroStrategy.” This Japanese investment firm mirrors its American counterpart by focusing heavily on Bitcoin accumulation. This strategy has propelled its stock past even MicroStrategy’s impressive gains.
Much like MicroStrategy, Metaplanet has been aggressively purchasing Bitcoin, using its corporate treasury to amass the asset. This bold strategy has captured investor attention, significantly boosting the company’s stock price. Metaplanet currently ranks as the 20th largest Bitcoin holder. Meanwhile, MicroStrategy leads the pack with 226,331 BTC worth $12.8 billion, nearly 1,000 times larger.
The two companies are engaged in a Bitcoin buying frenzy, dramatically increasing their stock prices by investing heavily in the cryptocurrency. While MicroStrategy pioneered this approach and has deeper pockets, Metaplanet is trying to catch up. However, both firms face the same risk: Bitcoin’s notorious volatility.
Unlike MicroStrategy, which has primarily focused on Bitcoin for some time, Metaplanet only recently began its Bitcoin acquisitions.
