Metaplanet buys $451 million worth of bitcoin in Q4, CEO Gerovich says
Japanese bitcoin treasury firm Metaplanet announced Tuesday that the company has acquired 4,279 BTC during the fourth quarter.
According to an X post from CEO Simon Gerovich, the company spent $451.06 million in the period to buy bitcoin, at an average price of $105,412 per BTC.
In total, Metaplanet now holds 35,102 BTC, accumulated at a combined cost of $3.78 billion, or an average price of $107,606 per bitcoin.
Bitcoin experienced significant volatility during the fourth quarter, plunging from its all-time high record of $126,080 in early October to lows of under $85,000 in a matter of weeks. The cryptocurrency was trading at $87,400 at the time of writing, down 2.4% in the past 24 hours.
At the current price, Metaplanet's fourth-quarter bitcoin purchases are valued at roughly $374 million, representing a 17% discount to the money spent. The company's total BTC holdings are currently valued at $3.06 billion.
The downturn in bitcoin and other major crypto assets sparked a broader sell-off in crypto treasury stocks, including Metaplanet's.
Metaplanet's U.S. shares (MTPLF) on OTC Markets closed down 4.26% on Monday at $2.70, according to The Block's price data. Its current price shows a notable discrepancy from its yearly high in May, reaching above $15. The company's Tokyo-listed stock fell 7.95% to close at 405 yen on Tuesday.
In October, Metaplanet announced a $500 million credit facility to fund a share buyback program to raise the value of its stock that was trading at a discount to its BTC holdings. Using the same facility, Metaplanet funded several bitcoin purchases. The company also raised capital through new share issuances to overseas investors.
The company previously stated that its bitcoin holdings provide substantial collateral coverage relative to the loan's size, with a policy that limits borrowing to levels ensuring sufficient buffers even during significant price volatility. Metaplanet added that the loan's financial impact on the company by the year-end would be minimal.
The company's official website shows that its mNAV — the company's value relative to the value of BTC treasury — stands at 1.02. This means that Metaplanet is trading at a slight premium to its BTC holdings.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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