Metaplanet Buys 463 BTC Worth $53.7M in Latest Bitcoin Acquisition

Key Takeaways:

• Metaplanet acquired 463 BTC for $53.7 million, averaging $115,895 per coin.
• The firm’s total Bitcoin holdings now stand at 17,595 BTC, worth approximately $1.78 billion.
• Company hints at even bigger purchases as it eyes a $3.7B capital raise.

Japanese investment corporation Metaplanet has made another bold step into Bitcoin by doubling its holding with a current emphasis on the cryptocurrency at the expense of traditional asset classes. The increasing cryptocurrency prices are signals that this is part of Metaplanet system changes, where financial institutions are getting back their faith.

Metaplanet has announced the purchase of 463 Bitcoin at Monday price of $53.7 million and has a total of 17,595 BTC worth approximately 1.78 billion dollars. On average the price of the buy was 115,895 dollars per coin which reflects great confidence in a volatile market.

This is not the first big stride of Metaplanet in months. Only last week, the company acquired 780 BTC at US$92.5 million bringing them to be among the most aggressive accumulators of Bitcoins in Asia.Year-to-date, Metaplanet has posted an eye-popping 459.2% return on its Bitcoin investments.

Read More : Metaplanet’s 4,000% Stock Surge: A Japanese Company’s Bitcoin Strategy Pays Off

The company’s consistent Bitcoin buys place it in direct competition with Strategy, the U.S.-based public company led by Michael Saylor. Strategy, which currently holds 628,791 BTC, recently spent $2.46 billion to acquire 21,021 BTC at an average price of around $73,227 per coin.

While Metaplanet’s holdings are significantly smaller, its ambitions are not. The firm is currently preparing to raise $3.7 billion by issuing perpetual preferred shares: a move that could fund even larger Bitcoin purchases in the future.

The capital raise will be reviewed at an Extraordinary General Meeting (EGM), and analysts believe a green light from shareholders could make Metaplanet a serious contender for top-tier Bitcoin holdings.

The price of Bitcoins recovered by 1 percent to a price of $114,594 compared to the low prices over the weekend of $111,800. The rebound is following the issuance of weak U.S. employment data that showed that only 73,000 jobs were added instead of the expected 190,000.

The weak labor data triggered a short-term “risk-off” sentiment in markets. However, institutional investors viewed the dip as a buying opportunity, bringing in new capital and momentum across crypto markets.

Traders are now pricing in an 89.1% chance that the Federal Reserve will cut interest rates by 0.25% in September. A reduction in rates would reduce returns on the other forms of investing and make Bitcoin and other digital currencies a more suitable investment.

The potentiality of monetary easing had contributed in defibrillating market sentiment back into the green realms: a condition more unfavourable to such firms as Metaplanet, whose balance sheet is becoming filled more and more with Bitcoin.

Read More: Metaplanet Shocks Market with $1.73B in Bitcoin, Closing Gap on MicroStrategy’s BTC Empire

The sentiment in the investor circles is mixed yet has been considered to be relatively bullish, especially among the bullish circles; though this is despite the recent twists and turns this has produced across the investor markets. There have been encouraging indicators across various sectors to sustain a very modest optimistic view even as there has been some hesitation.

In what can be considered a significant turn of events, on Monday during pre-market trade, shares of Metaplanet Inc. witnessed a decline by 6%, or 998 yen, as per the data provided by Yahoo Finance. This loss is especially alarming as the company had a very aggressive market vision and even the digital asset space in general is currently showing a positive trend. This decline might be related to some caution on the part of investors when confronted by the more and more aggressive approach by Metaplanet or to some holding back in regard to the announcement of increased information about the planned $3.7 billion raising effort by the company.

The post Metaplanet Buys 463 BTC Worth $53.7M in Latest Bitcoin Acquisition appeared first on CryptoNinjas.