By George Ward
Metaplanet’s Strategic Shift
Metaplanet, a Japanese firm often referred to as “Asia’s MicroStrategy,” has increased its Bitcoin (BTC) holdings with a new purchase worth ¥250 million ($1.5 million). The company announced this move through a post on its official X account.
Last month, Metaplanet made headlines by announcing its intention to become the first publicly traded company on the Tokyo Stock Exchange to invest in BTC. At that time, the firm allocated ¥1 billion, approximately $6.25 million, for its BTC acquisitions.
This step signaled a significant shift in Japan’s corporate investment strategies towards cryptocurrency. The latest acquisition follows an earlier investment this month, where Metaplanet purchased 19.87 BTC, valued at around ¥200 million.
This incremental approach underscores the company’s systematic strategy in expanding its BTC portfolio. The recent authorization to acquire an additional ¥250 million worth of BTC reinforces Metaplanet’s confidence in the cryptocurrency market.
Metaplanet’s aggressive investment in Bitcoin draws parallels to MicroStrategy, a US firm known for its substantial BTC holdings. Both companies are setting precedents in their respective regions by integrating significant cryptocurrency investments into their corporate investments.
Semler Scientific Embraces BTC, Stock Price Surges by 30%
Meanwhile, leading medical tech and software firm Semler Scientific has announced its adoption of BTC as its primary treasury reserve asset. Following its announcement of this decision, there was a surge of 30% in the company’s stock price.
Semler Scientific revealed its acquisition of 581 BTC, valued at $40 million. Eric Semler, Chairman of Semler Scientific, emphasized that the firm’s BTC treasury strategy demonstrates their confidence in this digital asset as a stable store of value and an attractive investment opportunity.
Semler, who also heads the investment fund TCS Capital Management, emphasized BTC’s unique characteristics. He added that the leading cryptocurrency is a scarce and finite asset, capable of serving as an effective inflation hedge and haven amidst global financial instability.
Market Reaction and Implications
Despite a 13% decline in revenue for the first quarter of 2024, Semler Scientific reported a 22% increase in net income, indicating improved profitability. Per the report, the company’s leadership explored various options for utilizing its cash reserves, including potential acquisitions, before concluding that investing in BTC was the most prudent decision.
The chairman explained that BTC’s robust infrastructure and resilience make it a more attractive choice than gold and predicted that its value would appreciate more as it becomes increasingly recognized as a digital store of value.
Semler Scientific’s move aligns with MicroStrategy’s, the largest corporate holder of BTC, with 214,400 BTC (worth $13.5 billion as of March 31, 2024). MicroStrategy secured $1.5 billion through two convertible note debt offerings in Q1 to purchase an additional 25,250 BTC, its 14th consecutive quarter of expanding its BTC holdings, according to Phong Le, the company’s President and CEO.
Semler Scientific’s embrace of this crypto asset represents a milestone in corporate finance, signaling a broader trend of companies exploring alternative treasury management strategies.