Why Did Metaplanet’s Stock Rocket 13% Overnight?
On August 20, 2024, Metaplanet Inc, known as “Japan’s MicroStrategy,” made headlines with its latest investment. The company revealed it had acquired 57.273 bitcoins, valued at 500 million Japanese yen (approximately $3.39 million). This brought Metaplanet’s total Bitcoin holdings to 360.368 BTC. The stock price surged by 13% on the announcement day.
Details of the Purchase
Metaplanet bought these bitcoins at an average price of 8,730,117 yen per BTC ($59,317). The company’s total Bitcoin investments now amount to 3.45 billion Japanese yen, with an average purchase price of 9,573,556 yen per BTC. This acquisition led to a notable rise in Metaplanet’s stock price.
Previous Investment Moves
A week earlier, Metaplanet had purchased 57.103 BTC for 500 million yen ($3.3 million) at an average price of 8,756,107 yen per BTC. To fund these acquisitions, the company secured a loan of 1 billion Japanese yen at a low 0.1% APR. Japan’s low interest rates allowed Metaplanet to invest more in Bitcoin while minimizing borrowing costs.
Impact on Stock Price and Bitcoin Market
The announcement drove Metaplanet’s stock price up 13% on Tuesday, reaching 1,193 yen and peaking at 1,295 yen. The company’s stock has risen over 645% year-to-date due to its aggressive Bitcoin strategy. Meanwhile, Bitcoin’s price jumped 4% in the past 24 hours, trading at $61,065, with trading volume up 40%.
Metaplanet’s strategic Bitcoin investments and stock price increase highlight its significant role in the cryptocurrency market. As Metaplanet continues expanding its Bitcoin holdings, its stock performance and the Bitcoin market will likely remain closely connected.
