Japanese company Metaplanet has announced the purchase of 38.6 Bitcoin (CRYPTO: BTC) for 300 million yen (around $2.2 million), boosting its total Bitcoin holdings to 398.8 BTC.
What Happened: This acquisition follows Metaplanet's August announcement that it would raise 10.08 billion yen to further increase its Bitcoin reserves, solidifying the company's strategy of allocating funds to the leading cryptocurrency.
Since adopting a pro-Bitcoin investment policy earlier this year, Metaplanet has steadily expanded its holdings, now worth approximately 3.75 billion yen ($27.6 million).
This approach mirrors the playbook of U.S.-based MicroStrategy, which has raised debt to acquire Bitcoin.
Metaplanet and other public companies have found a viable model in using debt to gain exposure to Bitcoin without liquidating existing assets.
Also Read: Bitcoin Back To $57K, But Monday's ETF Inflows Don't Drag It Out Of Bearish Territory, Analysts Say
Marathon Digital Holdings (NASDAQ:MARA) and Semler Scientific are also following similar strategies.
Marathon recently raised $250 million through a convertible note offering to purchase more Bitcoin, while Semler announced plans to raise funds for the same purpose.
The practice of borrowing fiat currency at low interest rates to acquire Bitcoin allows companies to capitalize on the cryptocurrency's appreciation potential.
This model enables firms to build significant Bitcoin reserves while managing existing assets.
What's Next: The evolving intersection of corporate finance and cryptocurrencies will be a key topic at Benzinga's Future of Digital Assets event on Nov. 19, where industry leaders will discuss the implications of such investment strategies and their potential impact on the broader financial landscape.
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