Japan’s Metaplanet Expands Bitcoin Holdings to $40.5M With Another 108 $BTC Purchase

Metaplanet, a Japanese budget hotel operator turned investment firm, announced purchasing an additional ¥1 billion ($6.9 million) worth of Bitcoin. This recent acquisition of 108.786 BTC brings the company’s total Bitcoin holdings to 639.50 BTC, now valued at approximately $40.54 million at current market prices.

This is Metaplanet's second investment in Bitcoin in October, following its previous purchase of 107.91 BTC on Oct. 1. The Tokyo-based firm’s strategy highlights its belief in Bitcoin as a strategic asset in navigating Japan's challenging economic environment, which includes negative interest rates and extensive quantitative easing.

Innovative Use of Bitcoin Put Options

On October 3, the firm announced that it had entered a Bitcoin put options transaction with Singaporean digital asset trading firm QCP Capital. In this deal, Metaplanet sold 223 Bitcoin put options contracts with a $62,000 strike price, maturing on December 27, 2024. 

The sale of these contracts earned the company 23.97 BTC in options premiums, valued at approximately $1.46 million at the time.

Bitcoin put options are financial contracts that give the buyer the right, but not the obligation, to sell Bitcoin at a predetermined price by a specific date. 

A Bold Bitcoin Investment Strategy

Metaplanet has become well-known for its assertive Bitcoin acquisition strategy, drawing comparisons to the American firm MicroStrategy, which has also heavily invested in the cryptocurrency under the leadership of Michael Saylor. 

Since May 2024, Metaplanet has used Bitcoin as its primary treasury reserve asset, which has dramatically boosted its stock price. Since adopting this strategy, the firm’s stock has surged over 532% this year, reflecting strong investor confidence in its Bitcoin-focused approach.

The firm recently announced a partnership with SBI VC Trade, a subsidiary of the SBI Group, to manage its corporate custody services for digital assets like Bitcoin. This collaboration aims to ensure that Metaplanet’s digital assets remain compliant with local regulations and that the company benefits from tax efficiency.

The Broader Japanese Crypto Landscape

Metaplanet's transition from a traditional hotel operator to a crypto-focused investment firm follows a larger trend among Japanese companies. 

A recent survey by Nomura and Laser Digital revealed that more than 500 investment managers in Japan are considering investing in cryptocurrencies. About half of the respondents also indicated they were open to using stablecoins for daily transactions and settlements.