This Company Buys Bitcoin and Its Price Increases More Than 500%

Japanese company Metaplanet recently announced a significant investment in Bitcoin, sending its stock up more than 500%. This strategic move aims to protect against the devaluation of the Japanese Yen and take advantage of BTC’s benefits.

Japanese company stocks benefit from Bitcoin

Although critics of Bitcoin describe it as a purely speculative asset, with no real value or utility, more and more people around the world are thinking differently and are adopting BTC for its qualities as a store of value and censorship-resistant currency.

This is especially the case for many companies around the world that are slowly starting to accept payments in Bitcoin or even allocating part of their cash flow to it.

👉 Learn more – Who has the most Bitcoins? Top 10 entities richest in BTC

A perfect example of this phenomenon is MicroStrategy, a US-based company led by Michael Saylor, a strong supporter of Bitcoin. MicroStrategy started gradually buying BTC since 2017 and now has over 214,400 BTC worth $14.9 billion.

On April 8, 2024 the Japanese company Metaplanet announced that it also wanted to allocate part of its cash flow in Bitcoin. Just 2 days after this announcement, the share price increased by 120%.

Metaplanet share price since February 2024

A month later, on May 13, Metaplanet publicly announced that it bought a total of 117.72 Bitcoins at an average price of 10.2 million yenor about $65,000.

Investor enthusiasm for the company’s adoption of Bitcoin has driven the stock price significantly, taking it from 19 yen at the time of the announcement to 120 today, a 530% increase in one month and more than 280% over the last 7 trading days.

The rise in Metaplanet’s price was so intense that a trading halt mechanism on the Tokyo Stock Exchange was automatically triggered twice.

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Why did Metaplanet invest in Bitcoin?

In addition to benefiting from the properties specific to Bitcoin and its appreciation, the adoption of this new strategy may allow Metaplanet to protect itself against the devaluation of the Japanese yen.

Yes, inflation in Japan is currently at 3.2%, the highest since 1991, and the yen has lost 53% of its value against the dollar since January 2021including 25% since January 2023, and today reached 156 yen per dollar.

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In addition, Metaplanet shares may soon be tokenized and available for trading on Liquid, the Bitcoin sidechain initiated by Adam Back.

Journalist Andrew Throuvalas of Decrypt suggested this idea in a post by Adam Back. The latter encouraged him to share it with Arnab Naskar, business manager at Stork, a tokenization platform on the Liquid network. If this idea comes to fruition, Metaplanet will join MicroStrategy, also tokenized by Stork.

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Sources: The Metaplanet, Trade display

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