MetaPlanet's Holdings Surpass $1B

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Japanese Bitcoin treasury company Metaplanet’s Bitcoin holdings have officially crossed $1B in value, with their latest acquisition of 1,112 BTC, or $117.66M worth, last night. The company now holds a full 10,000 BTC in on their identified wallets.

Dubbed the Japanese MicroStrategy, MetaPlanet has recently announced a $5.4B equity raise for the purchase of acquiring more Bitcoin for their treasury. This is in line with their longer term vision of amassing 1% of the total Bitcoin supply by 2027. MetaPlanet has been one of the most successful Bitcoin treasury companies, having seen their share price rise more than twenty-fold since the beginning of their Bitcoin treasury strategy. Many newer Bitcoin treasury companies have since emerged, eager to ride on the success of this strategy.

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The corporate Bitcoin treasury strategy itself is relatively new, championed as a defensive maneuver against the devaluation of fiat currencies. The thesis is that holding cash or cash equivalents on their balance sheet exposes them to a loss of purchasing power due to inflation. By converting a portion of their treasury into Bitcoin, with its fixed supply of 21 million coins, they aim to preserve shareholder value over time.

Whether all the crypto treasury companies are adopting the strategy based on this thesis or because they have run out of options and ideas for boosting their own share price remains to be seen.

As a company's Bitcoin holdings grow to represent a substantial portion of its total value, its stock often begins to function as a publicly-traded proxy for the digital asset itself. This can be particularly appealing to institutional investors whose mandates may restrict them from holding digital assets directly but allow for investment in equities. The resulting demand can cause the company's share price to become highly correlated with Bitcoin's market movements, often trading at a significant premium to the actual value of the BTC it holds. This "proxy" effect is a key driver behind the dramatic stock performance of companies like MetaPlanet, rewarding early equity holders and attracting further capital to accelerate the strategy.