Home Business Japanese Bitcoin Giant Soars 500% on Stock Market with Coin Buys

Japanese Bitcoin Giant Soars 500% on Stock Market with Coin Buys

Japanese bitcoin giant rises 500% on the stock market by buying coins

A Japanese company, similar to MicroStrategy in the crypto world, is making headlines today. To raise funds, it is issuing bonds with the goal of acquiring a significant amount of bitcoins (BTC).

1 billion yen worth of bitcoins

The investment firm Metaplanet plans to sell 1 billion yen worth of bonds, equivalent to approximately $6.26 million, to purchase more bitcoins. The Tokyo-based company has previously purchased a substantial amount of bitcoin and now intends to significantly expand its holdings.

The company’s statement indicates that its board of directors has approved the plan, which will see the company buying bitcoins to hold long-term. Bondholders will receive an annual interest of 0.5%.

The news has sent the company’s stock price soaring, with a 11.5% increase to 96 yen, equivalent to about 60 dollar cents, on the day. Compared to the beginning of the year, the stock has already experienced a massive increase of over 500%.

Record of 214,400 BTC

With the current bitcoin price, the 1 billion yen could purchase the company about 100 BTC. These 100 bitcoins will be added to the 141 bitcoins the company already owns, including a recent purchase of 23.25 BTC on June 11.

The company initially bought 117 BTC in May, when it announced its switch to bitcoin due to Japan’s economic problems. Metaplanet hopes this move will protect its capital against inflation and the country’s deteriorating economy.

The company’s decision to invest in bitcoin is similar to that of MicroStrategy, an American company that was the first to invest its capital reserves in bitcoin. As a result of the choice, the company’s stock also rose dramatically. MicroStrategy currently owns the most bitcoins as a company, a staggering 214,400 BTC worth $13.4 billion.

Metaplanet’s recent report shows that it had an average purchase price of $65,365 per bitcoin. However, due to the recent falling price, its investment is currently underwater.

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