Metaplanet stock jumps after announcing $10.5 million Bitcoin purchase
- Metaplanet announces the purchase of an additional 156 Bitcoin on Monday, with the total holdings of the firm surpassing 1,000 BTC.
- The Japanese investment firm earned a 155.8% Bitcoin yield in October, up from the 41.7% recorded between July and September.
- Metaplanet stock gained 7% on the day.
Japanese investment firm Metaplanet Inc. said on Monday that it had expanded its Bitcoin (BTC) holdings by around 156 BTC, worth around $10.5 million. With the latest purchase, the Tokyo-listed firm has more than doubled its Bitcoin holdings in Q3, holding 1,018 BTC valued at around $69 million.
Recently, the firm adopted a new performance metric to evaluate its BTC holdings and their returns. According to an October 25 disclosure, Metaplanet earned a 116.4% Bitcoin yield in October.
Japanese investment giant buys over $10.5 million in Bitcoin
Metaplanet seems to be closely following US-based business intelligence firm MicroStrategy (MSTR) in its Bitcoin adoption strategy. The firm acquired 156 Bitcoin, according to Monday’s announcement, the total holdings are now over 1018 BTC, valued at over $59 million.
The investment firm’s Bitcoin acquisition has resulted in a substantial increase in BTC Yield, up from the 41.7% recorded in the third quarter to 155.8% in October. In Q3 2024, Metaplanet’s Bitcoin holdings have more than doubled.
*Metaplanet purchases additional 156.78 $BTC* pic.twitter.com/4zl2LhXvO6
— Metaplanet Inc. (@Metaplanet_JP) October 28, 2024
The firm’s latest Bitcoin purchase makes it one of the largest corporate BTC holders in Asia, according to CEO Simon Gerovich.
Metaplanet’s stock added 7.2%on the day following the announcement.
Institutions HODL their Bitcoin
Tesla, a US-based Electric carmaker, recently moved its Bitcoin holdings to new wallet addresses, according to on-chain data from Arkham Intelligence. Analysts believed that either the firm plans to apply for a Bitcoin loan or change of custodian.
Bitcoin Spot ETFs in the US continue to see sustained institutional interest. On Friday, BTC ETFs garnered $402 million in net inflows, according to Farside Investors data.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
