What Happened?
Japanese investment company Metaplanet has boldly transformed from the hotel industry, announcing a Bitcoin acquisition plan, aiming to purchase 210,000 Bitcoins by the end of 2027 and raising $5.4 billion for this initiative. This news triggered a significant surge in its stock price, which jumped as much as 22% in a single day, accumulating over a 1,744% increase in the past year, indicating the market’s high attention and expectations for its strategy. If successful, Metaplanet is poised to become the second-largest publicly traded company holder of Bitcoin globally.
Metaplanet’s core strategy is the “555 Million” plan, which will raise funds through a large-scale stock subscription rights issuance. This plan is expected to invest over $21 billion to achieve the goal of holding 210,000 Bitcoins by the end of 2027.
Metaplanet’s actions reflect a growing global trend of companies incorporating Bitcoin into their balance sheets. Currently, global corporate Bitcoin reserves exceed 3 million Bitcoins, valued at over $342 billion. However, the stock price reactions of companies announcing Bitcoin purchases vary, indicating a divergence in market recognition of such strategies.
Metaplanet Boldly Invests in Bitcoin, Stock Price Soars
Recently, Japanese investment company Metaplanet announced an ambitious Bitcoin acquisition plan, shocking global markets. Originally engaged in the hotel industry, the company is quickly transforming into a key player in the cryptocurrency space, with its stock price rising significantly.
On June 6, Metaplanet announced a stock subscription rights plan, claiming it to be the largest in the history of Japan’s capital markets, and updated its Bitcoin acquisition target: to purchase 210,000 Bitcoins by the end of 2027, ten times higher than the previously set goal of 21,000 Bitcoins.
After Metaplanet announced plans to raise $5.4 billion to buy Bitcoin, its stock price rapidly surged at market opening.
According to Google Finance data, Metaplanet’s stock soared over 12% during trading on June 9, reaching a trading price of 1,505 yen ($10.42). At one point, it peaked at 1,641 yen (approximately $11.36), with an increase of up to 22%.
Since Metaplanet announced its intention to purchase Bitcoin in large quantities, its stock price has risen 24% in the past five days.
If this acquisition plan is successful, according to data from Bitcoin data and statistics platform Bitbo, Metaplanet will become the second-largest Bitcoin holder among publicly traded companies, following Michael Saylor’s company MicroStrategy (now renamed Strategy).
Metaplanet’s “555 Million” Plan: Building a Bitcoin Giant
After the recent announcement on June 2 to acquire 1,088 Bitcoins, Metaplanet currently holds a total of 8,888 Bitcoins.
The “555 Million” plan aims to transform the company into a major Bitcoin holder, supported by large-scale equity financing.
As part of the “555 Million” plan, Metaplanet expects to purchase an additional 201,112 Bitcoins by the end of 2027, with the total cost estimated to exceed $21 billion. The company has also stated its plan to hold 100,000 Bitcoins by the end of 2026.
Previously, Metaplanet’s “21 Million” plan aimed to hold 21,000 Bitcoins by the end of 2026, without specific follow-up purchase plans.
Metaplanet first announced its Bitcoin acquisition on July 22, 2024, when its stock price immediately rose 19% to 173 yen (approximately $1.1). Since the first purchase, Metaplanet’s stock price has increased over 1,744% within a year.
Companies Embrace Bitcoin, MicroStrategy Leads the Trend
More and more companies have decided to incorporate Bitcoin into their balance sheets, such as South Korean entertainment company K Wave Media, which announced its entry into this arena on June 4.
According to Bitbo data, global corporate Bitcoin reserves currently hold over 3 million Bitcoins, valued at over $342 billion. The total amount of circulating Bitcoins exceeds 19 million.
A report from Standard Chartered Bank on June 3 indicated that this strategy of incorporating Bitcoin into corporate reserves has led 61 publicly traded companies to hold a combined 3.2% of the total Bitcoin supply.
Although many companies see their stock prices soar after announcing Bitcoin purchases, this is not always the case.
Norwegian cryptocurrency brokerage K33 announced its intention to purchase and hold cryptocurrencies on May 28, but its stock price remained flat or even dropped by 1.96%. Video game retailer GameStop’s stock rose nearly 12% after announcing plans to purchase Bitcoin on March 26, but it fell by 11% after making its first purchase of 4,710 Bitcoins on May 11.
References: bloomberg, cointelegraph