Metaplanet Spends $451M on Bitcoin, Holdings Surpass 35,000 BTC

Metaplanet bought $451 million in Bitcoin during Q4, lifting its total holdings to 35,102 BTC amid the market volatility.

Metaplanet has bought another $451 million in Bitcoin during a turbulent fourth quarter. 

The Japanese firm stayed active even as prices fell hard, and this move has pushed its total Bitcoin holdings to new highs.

Metaplanet Buys $451 Million in Bitcoin in Q4

Metaplanet bought $451 million in Bitcoin during the final quarter of the year. 

The company’s CEO Simon Gerovich shared the update in a public post and said that the company acquired 4,279 BTC during the period. It also paid an average price of $105,412 per Bitcoin.

This buying spree came during price swings across most of the market, when Bitcoin hit a record high above $126,000 in early October. Prices then dropped fast and fell below $85,000 weeks later. 

Despite this drop, Metaplanet continued to buy.

After these purchases, the company now holds 35,102 BTC and has spent about $3.78 billion in total. Notably, the average cost across all holdings sits near $107,606 per Bitcoin.

Funding the Bitcoin Strategy

Metaplanet did not rely on cash alone. It used a mix of loans and new stock issuance. In October, the firm secured a $500 million credit facility, and the goal was to support a share buyback plan and Bitcoin purchases.

Management said that the loans carry limited risk. The firm keeps borrowing levels low compared to the value of its Bitcoin and this policy allows room even during price drops. 

In all, the company expects the financial effect of the loan to remain small by year end.

Metaplanet also issued new shares to overseas investors. This helped fund further Bitcoin buying. The approach also allowed the firm to keep building its treasury without heavy pressure on daily operations.

Related Reading: Japan’s Bitcoin Giant Launches Dividend Shares

Market Volatility Hits Valuations

Bitcoin prices dropped hard during the quarter. At the time of reporting, Bitcoin traded near $87,400 and that level put Metaplanet’s fourth quarter purchases at a paper loss. 

The $451 million spent is now valued closer to $374 million.

Total holdings are worth about $3.06 billion at current prices, but is still well below the total amount spent. 

Another interesting trend is how Crypto treasury stocks fell during the downturn. Metaplanet shares followed the trend as its US-listed shares on OTC Markets closed down 4.26% at $2.70. 

Earlier in the year, those shares traded above $15.

The Tokyo-listed stock also dropped. Shares fell nearly 8% in one session and closed at 405 yen. Even so, the stock ended the year up about 8%.

Treasury Value and mNAV Explained

Metaplanet tracks its value using a metric called mNAV. This compares the firm’s market value to its Bitcoin treasury value. 

Metaplanet’s current mNAV is around 9.98 | source: BitcoinTreasuries

A reading above 1 means the stock trades at a premium. This is important because the company’s mNAV tends to fluctuate between 0.9 and 1.02, indicating that the market values the firm slightly above (or below) its Bitcoin holdings. 

Metaplanet has stated that its Bitcoin acts as strong collateral, which supports its loan structure and helps limit its downside risk.

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