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Metaplanet’s Dive into Crypto Follows MicroStrategy’s Playbook as More Public Companies Look to Bitcoin

Last Updated April 26, 2024 12:06 PM
Teuta Franjkovic
Last Updated April 26, 2024 12:06 PM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Metaplanet has allocated millions of dollars to its corporate treasury funds to purchase Bitcoin.
  • The company acquired over 90,000 Bitcoin, mimicking Microstrategy’s efforts.
  • This investment accounts for about 30% of Metaplanet’s present market capitalization.
  • More and more publicly traded companies are becoming notable stakeholders in the Bitcoin ecosystem.

Metaplanet is taking a page from MicroStrategy’s playbook. The Japanese company is investing in Bitcoin, using it as a strategic asset for its reserves.

The Japanese firm recently disclosed  that it has bought ¥1 billion ($6.25 million) worth of Bitcoin, signaling its entry into the cryptocurrency market. The move comes as more public companies are looking to buy BTC.

Metaplanet Adopts Bitcoin as Strategic Investment

This decision is part of Metaplanet’s broader strategy to diversify its investment portfolio and embrace digital assets. Detailed in a “Progress of Disclosure ” notice dated April 8, 2024, Metaplanet secured 97.8519 Bitcoins at an average cost of ¥10,219,524 per Bitcoin. This strategic investment not only diversifies Metaplanet’s portfolio but also marks a substantial commitment to the cryptocurrency sector, reflecting the company’s confidence in Bitcoin as a viable asset class.

This strategic decision marks a significant pivot in Metaplanet’s financial strategy, as the company now adopts Bitcoin as its primary treasury asset. Company representatives explain that this move underscores a dual commitment to cryptocurrency and to leading innovation in the financial sector.

Additionally, the transition to Bitcoin is described as a crucial milestone for Metaplanet, establishing the firm as a frontrunner in Japan’s digital finance arena and as an early adopter in the cryptocurrency space. This positions Metaplanet not only at the forefront of investment trends but also as a pioneer in integrating digital assets into traditional corporate finance structures.


A Boost for Crypto Market Maturity

While Bitcoin continues to be viewed as a store of value and a hedge against inflation, more corporations are considering including crypto in their financial strategies.

Metaplanet’s Bitcoin purchase not only highlights the company’s confidence in BTX but also signals growing corporate trust in digital assets. Such moves are instrumental in driving wider acceptance. Perhaps more importantly, they could help crypto mature.

Currently, Bitcoin (BTC) is trading  around $63,000, marking a fall of 4.6% in the last 24 hours. It also has a market capitalization of approximately $1.27 trillion. This valuation underscores the significant impact and relevance of cryptocurrencies in today’s financial landscape.

Following MicroStrategy’s Playbook

Metaplanet is joining the ranks of companies using Bitcoin as a treasury asset.This trend was pioneered by MicroStrategy under the leadership of Michael Saylor. MicroStrategy got considerable attention for its substantial Bitcoin investments, which, while central to its business strategy, have somewhat overshadowed its core business intelligence offerings. This singular focus on cryptocurrency holdings has had implications for how the company is perceived overall.

Four years after its initial investment, MicroStrategy has amassed more than 214,000 Bitcoin. This represents approximately 1% of all tokens currently in circulation. As of last Saturday, MicroStrategy’s holdings were worth about $13.6 billion. Saylor, who owns about 12% of MicroStrategy’s shares, significantly enhancds his personal net worth with his company stock and a personal collection of over 17,000 Bitcoin. These assets contribute to his estimated net worth  of just under $4 billion.

While it’s premature to conclusively assess how successful MicroStrategy’s strategy to position itself as the primary proxy for Bitcoin will be, this approach faces new challenges following the SEC’s approval of several spot Bitcoin ETFs in January, which aim to serve a similar function. Despite these developments, Michael Saylor, bolstered by his recent financial gains, remains undeterred and confident in his company’s course.

He said :

“Is there any company in the world that you wouldn’t like to invest in that could borrow $1 billion at less than 1% interest to invest in your best idea?”

Big Money Bets on Bitcoin: Institutional Ownership Surpasses 11%

According to data from Bitcoin Treasuries , an entity tracking institutional ownership of Bitcoin, publicly traded companies, private firms, countries, and exchange-traded funds (ETFs) collectively hold an impressive total of 2,511,273 Bitcoin. This figure represents 11.958% of all Bitcoin currently in circulation, indicating significant institutional involvement in the Bitcoin market.

Among these, publicly traded companies are notable stakeholders in the Bitcoin ecosystem. Here are some of the top corporate holders:

  • MicroStrategy Inc (NASDAQ:MSTR): holds 205,000 Bitcoin, making it one of the largest corporate investors.
  • Marathon Digital Holdings Inc (NASDAQ:MARA): owns 16,930 Bitcoin.
  • Tesla Inc (NASDAQ:TSLA): has 9,720 Bitcoin in its reserves.
  • Hut 8 Mining Corp (NASDAQ:HUT): possesses 9,110 Bitcoin.
  • Coinbase Global Inc (NASDAQ:COIN): holds 9,000 Bitcoin.

These holdings highlight the growing acceptance and integration of Bitcoin within the financial strategies of major companies globally.

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