What Happened?
Japanese investment company Metaplanet has boldly transformed from the hotel industry and announced 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 soared by as much as 22% in a single day and has accumulated an increase of over 1,744% in the past year, reflecting the market’s high attention and expectations for its strategy. If successful, Metaplanet is expected to become the world’s second-largest publicly traded Bitcoin holder.
Metaplanet’s core strategy is the “555 Million” plan, which will raise funds through a large-scale issuance of stock purchase rights. 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 global trend of increasing numbers of companies incorporating Bitcoin into their balance sheets. Currently, global corporate Bitcoin reserves have exceeded 3 million Bitcoins, with a total value of over $342 billion. However, the market’s response to companies announcing Bitcoin purchases varies, indicating a divergence in the acceptance of such strategies.
Metaplanet Boldly Enters Bitcoin, Stock Price Surges
Recently, Japanese investment company Metaplanet announced an ambitious Bitcoin acquisition plan that has shaken the global market. Originally operating in the hotel business, the company is rapidly transforming into a key player in the cryptocurrency space, with its stock price rising significantly as a result.
On June 6, Metaplanet announced a stock purchase rights plan, claiming it to be the largest in the history of the Japanese capital market, and updated its Bitcoin acquisition target: to purchase 210,000 Bitcoins by the end of 2027, which is 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 surged rapidly at market open.
According to Google Finance data, Metaplanet’s stock soared over 12% during trading on June 9, reaching a trading price of 1,505 yen (approximately $10.42). The intraday high even reached 1,641 yen (about $11.36), with an increase of up to 22%.
Since Metaplanet announced its intention to purchase a large amount of Bitcoin, its stock price has surged by 24% in the past five days.
If this acquisition plan succeeds, based on data from the Bitcoin data and statistics platform Bitbo, Metaplanet will become the second-largest Bitcoin holder among publicly traded companies, second only to Michael Saylor’s company MicroStrategy (now renamed Strategy).
Metaplanet’s “555 Million” Plan: Building a Bitcoin Giant
After the latest announcement on June 2 regarding the acquisition of 1,088 Bitcoins, Metaplanet currently holds a total of 8,888 Bitcoins.
The ultimate goal of Metaplanet’s “555 Million” plan is to transform the company into a major Bitcoin holder and support this goal through large-scale equity financing.
As part of the “555 Million” plan, Metaplanet expects to acquire an additional 201,112 Bitcoins by the end of 2027, with a total estimated cost exceeding $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 purchase on July 22, 2024, at which time its stock price immediately rose by 19% to 173 yen (approximately $1.1). Since the first purchase, Metaplanet’s stock price has accumulated an increase of 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. For example, South Korean entertainment company K Wave Media announced on June 4 that it would join this trend.
According to Bitbo data, global corporate Bitcoin reserves currently hold over 3 million Bitcoins, valued at over $342 billion. The total circulating supply of Bitcoin exceeds 19 million.
A report from Standard Chartered Bank on June 3 indicated that this trend of incorporating Bitcoin into corporate reserves has led to 61 listed companies globally holding 3.2% of the total Bitcoin supply.
Although many companies experience a surge in stock prices after announcing Bitcoin purchases, this is not universally the case.
Norwegian cryptocurrency brokerage K33 announced on May 28 its intention to purchase and hold cryptocurrency, but its stock price remained flat, even declining by 1.96%. Video game retailer GameStop’s stock jumped nearly 12% after announcing plans to purchase Bitcoin on March 26, but fell 11% after its first purchase of 4,710 Bitcoins on May 11.
Reference: Bloomberg, Cointelegraph