Strategy and Metaplanet Acquire $870M in Bitcoin Holdings
Two of the world’s most prominent corporate crypto investors, Strategy (formerly MicroStrategy) and Japan’s Metaplanet, have significantly deepened their exposure to the digital gold, acquiring a combined 8,394 BTC this week, worth nearly $870 million.
It continues a spree of aggressive buying that began about a week ago. In the last two weeks, both companies have accommodated over 23,000 BTC, which are now worth more than $2 billion, setting them apart as top industry players.
$765M Bitcoin Purchase Funded by Share Sales
On May 19, Strategy informed the Securities and Exchange Commission (SEC) that between May 12 and May 18, it had purchased 7,390 Bitcoin at an average rate of $103,498 per coin. The majority of the $764.9 million spent on the acquisition came from share sales.
It obtained $705 million by issuing over 1.7 million MSTR shares and an extra $59.7 million through the sale of 621,555 STRK shares. The new purchase allows Strategy to acquire 576,230 BTC, valued at $59.09 billion. This gives the company the title as the largest Bitcoin holder among publicly listed firms.
The unrealized gain from Strategy’s average purchase cost of $69,726 adds up to almost $19 billion. But some shareholders are seriously questioning CEO Michael Saylor’s strategy of prioritizing Bitcoin.
Strategy is being accused by Pomerantz LLP in a class action lawsuit of misleading investors about Bitcoin’s prospects while concealing its main dangers. Uncertainty surrounds the lawsuit’s progress because the law firm has not yet chosen a lead plaintiff for the case.
Metaplanet Eyes 10,000 BTC by End of 2025
Metaplanet, which is listed on the Tokyo Stock Exchange, is fast becoming the biggest public holder of Bitcoin in Asia. Recently, the company purchased an additional 1,004 BTC for $104.6 million, which added up to 7,800 BTC altogether and an estimated value of $807 million.
Metaplanet purchased its first Bitcoin in April 2024 and plans to have 10,000 BTC by the end of 2025.
This strategy is yielding benefits outside the crypto industry as well. On May 19, Metaplanet CEO Simon Gerovich announced that its stock was the ninth most frequently traded in Japan, bringing in 61.69 billion yen (around $425 million) each day. The volume of trading surpassed that of famous companies like Toyota, SoftBank, and Nintendo.
Strategy and Metaplanet are pooling their assets together at a time when investment in Bitcoin as a treasury asset is becoming popular again. The fact that both companies now rank in the top ten corporate Bitcoin holders demonstrates the institutional market’s strong belief in Bitcoin despite the questions from regulators.
The pushback against Strategy demonstrates a significant risk corporations encounter when dealing with both crypto and the public market. As companies begin adding Bitcoin to their finances, regulation and transparent practices will continue to be key areas of concern.
