Metaplanet Inc., a Japanese investment firm, has announced its plans to purchase more Bitcoin tokens by issuing bonds at an annual rate of 0.5%. The objective is to acquire BTC tokens worth ¥1 billion. This roughly translates to $6.26 million. The flagship crypto will be purchased using the capital raised through an upcoming bond issuance round. The payment date for bonds is June 25, 2024, and they will mature on June 26, 2025.
The Tokyo-listed company saw its stock surge by 12.2% following the announcement. Purchasing more Bitcoin is part of Metaplanet’s mission to adopt the digital asset as its strategic treasury reserve asset. This means that Metaplanet is buying Bitcoin to balance the economic pressures that it is facing in Japan. These pressures pertain to high government debt levels, a weaker Yen, and prolonged periods of negative real interest rates.
This is not the first time that Metaplanet is buying Bitcoin. The investment firm had previously bought BTC on April 23, May 10, and June 11 of this year. The last purchase was made earlier this month for tokens worth ¥250 million. As of June 11, 2024, Metaplanet shared that it had 141.07 BTC tokens in its name.
For a quick reference, Bitcoin ($BTC) is currently hovering around $62,250.76, down by 3.28% in the last 24 hours and 6.06% in the last 7 days. Its market cap has plummeted by 3.25%, while the 24-hour trading volume has surged by 88.34%. With a volatility level of 2.71%, near-term predictions are likely to defy ongoing bearish sentiments. Points on the Fear & Greed Index have dropped to 55, and the 14-day RSI is now 36.56.
Metaplanet is not the only company making a move to purchase BTC. MicroStrategy has been doing it for a long time. It recently expanded its holdings by purchasing 11,931 tokens worth $786 million. According to reports, its total holdings now stand at 226,331 BTC, solidifying its position as one of the largest Bitcoin holders. Michael Saylor on X has confirmed the development.
A move like this by Metaplanet has earned the investment firm the title of Asian MicroStrategy.
BTC is next predicted to surge by 32.97% to reach the value of $84,279 in the next 30 days. It is critical for the token to first test its resistance at $73,164 in the next 5 days or so. Prevailing trends don’t send such strong signals, but the token is determined to make a move for the jump.
Bitcoin is predicted to regain its ATH and surpass the milestone of $74,000. It could go as high as $100,000 by the end of the year. Many analysts have even said that BTC has the potential to breach the $150k mark by the end of 2024.