Japan’s Metaplanet hits $2B in Bitcoin holdings after latest transfer

Japan’s Metaplanet hasn’t stopped buying Bitcoin, and its latest acquisition pushed it over $2 billion mark.

Japan’s largest corporate Bitcoin (BTC) hasn’t stopped accumulating, and its latest purchase pushed it over a major milestone. On Monday, July 28, Metalanet’s Bitcoin holdings hit $2 billion, according to blockchain analytics platform Arkam Intelligence.

This milestone comes after QCP Capital, a key investor in Metaplanet, transferred an additional $46.7 million in BTC to Metaplanet’s wallet. The transfer appears to be part of the latest purchase, amounting to 780 Bitcoin, worth around $92 million, as disclosed in official filings.

According to Metaplanet’s filings, the company now holds 17,132 Bitcoins, which are worth around $2,021 billion. This showcases a rapid pace of Bitcoin purchases, which are accelerating due to its aggressive strategy. On June 25, Metaplanet’s holdings were at 12,345 BTC, which enabled it to surpass those of Tesla.

Metaplanet’s stock struggles despite Bitcoin accumulation

Metaplanet uses a combination of equity and debt financing to acquire Bitcoin. This mirrors Michael Saylor’s Strategy, which remains the largest corporate BTC holder globally. Still, this aggressive strategy comes with downsides, as seen in Metaplanet’s stock price.

Currently, Metaplanet is down 25% in the last 30 days, and down more than 40% from its yearly highs. At the same time, its key asset, Bitcoin, continues to trade near all-time high levels. Interestingly, Strategy is also under similar pressures, down 25% from its yearly highs.

Purchases of BTC through debt effectively make a stock leveraged bet on the underlying asset. For this reason, stocks like Metaplanet and Strategy are inherently more volatile than Bitcoin. If BTC’s price drops significantly, Metaplanet stands to lose even more and may be forced to sell BTC to service its debts.