This phenomenon suggests that including Bitcoin in an institutional portfolio is being perceived as a wise strategy by investors, given the current prices of the cryptocurrency.
The actions of Metaplaneta Japanese investment company listed on the Tokyo Stock Exchange under the ticker 3350experienced a significant increase this Tuesday following an announcement related to Bitcoin (BTC) and its reserves.
The Japanese firm’s stock is on track to close the day with a 10% increase, after the company revealed that it acquired an additional 21 BTC, iincreasing their total holdings of the cryptocurrency to 225 BTC, equivalent to over US$14 million.
This news was very well received by the market, boosting the price of its shares by more than 25% at its best point of the session, reaching US$121. This phenomenon suggests that including bitcoin in an institutional portfolio is being perceived as a wise strategy by investors, given the current prices of the cryptocurrency.
This recent purchase of bitcoin, which has caused the value of Metaplanet shares to rise, It is the fifth one made by the company in the last three months, according to the BitcoinTreasuries explorer.Since it began investing in Bitcoin as a strategic reserve asset in April, the firm has been responding to persistent economic pressures in Japan, such as high levels of public debt, prolonged periods of negative real interest rates and the resulting weakness of the yen.
With his growing investment in Bitcoin, Metaplanet strengthens its position among the publicly traded companies with the largest reserves of this cryptocurrency. It is currently in the top 30 worldwide, surpassed by companies such as Mercado Libre, which holds 412 BTC. The list is led by MicroStrategy, which holds 226,331 BTC.
Although Metaplanet’s investment is considerably smaller, The company appears to be following MicroStrategy’s investment strategy, making recurring purchases of Bitcoin to average out the acquisition price, a tactic known as DCA (Dollar Cost Averaging).
bitcoin cryptocurrencies
Metaplanet’s most recent purchase was made when bitcoin was trading around $57,000, in a phase of price sideways movement that the cryptocurrency has maintained for the last four months. According to reports from CriptoNoticias, after stabilizing during the first half of July, bitcoin has recovered this week to $63,000.
With this move, Metaplanet shows its optimism regarding the future of bitcoin, even though its current value is still below the all-time high of $73,700 reached in March.
Source: Ambito
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