Investment Firm Metaplanet Shares Rose 90% After Investing $6.46 Million in Bitcoin

Metaplanet is walking in the footsteps of MicroStrategy and adding Bitcoin to its balance sheet as per a new report. The firm recently announced that it has plans to add Bitcoin as a hedging asset in the company treasury.

Metaplanet Adds Bitcoin as a Core Treasury Asset

The publicly listed firm Metaplanet has declared that it has invested 1 billion yen or $6.5 million worth of Bitcoin as a core treasury asset. Metaplanet is an investment firm that focuses on Web 3.0 and metaverse-based businesses.

The firm decided to adopt Bitcoin as a treasury good after getting backing from Sora Ventures, UTXO Management, and other noteworthy individuals such as Mark Yusko who founded Morgan Creek Capital and Jack Liu, the co-founder of Ordiswap.  

Sora Ventures founder Jason Fang told the media that Metaplanet has undertaken the adoption of Bitcoin to grant access to Japanese investors to gain exposure in Bitcoin without facing regulatory risks.

Bitcoin adoption has assisted Metaplanet to gain considerable market momentum that leads to stock prices rising up to 89% after the announcement.

Metaplanet announced that this milestone was a significant achievement and will cement the position of this firm as a pioneer in adopting digital assets. A Fortune 500 enterprise MicroStrategy popularized the idea of adopting Bitcoin led by Michal Saylor.

Significant Role of Michael Saylor in Bitcoin Adoption

Michal Saylor, the former CEO at MicroStrategy, made a lot of efforts in popularizing the idea of enterprises to add Bitcoin in their treasuries. He has claimed that he convinced Tesla CEO Elon Musk to invest $1.5 billion in Bitcoin in 2021.

The firm itself started to accumulate Bitcoin as early as 2020 with a $10K range. In the upcoming 4 years, NASDAQ-listed firm added around 214,246 Bitcoins at an average cost of $34K per unit.

The current market value of MicroStrategy’s Bitcoin holding is estimated to be around $15 billion which has generated 100% profit for the entity.

During the bear market height in 2022, the firm Bitcoin holdings incurred temporary losses but Saylor refused to sell the Bitcoin holdings and double-down by purchasing more of the flagship digital asset.

Saylor viewed Bitcoin as a treasury-hedge and worked tirelessly to advocate other public listed firms to follow suit.

A price analysis of Bitcoin longs published by Cointelegraph recently noted that traders are anticipating a further decline in price. The projected price decline is attributed to $1.05 billion in short positions at in case Bitcoin returns to price point of the last 24 hours.

Bitcoin price declined by 7% during the last 24 hours as per this analysis report that saw $256 million in losses for investors having long positions.

Cointelegraph analysts are confident that it was part of the organic price adjustments that stemmed out of geopolitical changes taking place in the Middle East.

Benjamin Cowan noticed that this price decline was normal and in line with several 20-22% drops for the ongoing Bull Run. Meanwhile, Michal Saylor commented that chaos is good for Bitcoin in a 13th April post on X.

Bitcoin Price Corrections

Meanwhile, a pseudonymous trader that goes by the name of Rekt Capital noticed that Bitcoin is going to resume its uptrend after the short-term corrections. However, the analyst noted that Bitcoin price declines are deep enough to convince crypto investors that the Bull Cycle is over.  

Bitcoin price has retraced to $60,919 before re-balancing at $62K. At press time, Bitcoin prices are fair at $65K according to projections from CoinMarketCap.

As per the Cointelegraph analysis, the recent market correction depleted $319.15 million from leveraged positions in Bitcoin within the last 24 hours. CoinGlass data indicates that $256.58 million from long positions and $62.58 million in short positions make up for different aspects of this liquidation.

Bitcoin investors expect a further temporary downside. However, if Bitcoin is able to maintain a $67,000 price point of 24 hours ago, the short-positions aggregated at $1.05 billion may be liquidated.