Metaplanet and Smarter Web Boost Bitcoin Holdings by Nearly $100M

Two publicly listed companies, Japan’s Metaplanet and the United Kingdom’s The Smarter Web Company, have added almost $100 million worth of Bitcoin to their corporate treasuries. On Tuesday, Metaplanet disclosed that it purchased 518 Bitcoin for about $61.4 million at an average price of $118,519 per coin. This acquisition increased the Tokyo-listed company’s total holdings to 18,113 BTC, valued at approximately $2.15 billion at current prices, with an average acquisition cost of $101,911 per Bitcoin. Led by CEO Simon Gerovich, Metaplanet now ranks sixth globally among public companies in Bitcoin holdings, trailing behind Michael Saylor’s Strategy, MARA, XXI, Bitcoin Standard Treasury Company, and Riot, according to data from BitcoinTreasuries.NET. This latest purchase follows Metaplanet’s announcement earlier in the month to raise up to 555 billion Japanese yen ($3.7 billion) through offering perpetual preferred shares to support its acquisition strategy.

Smarter Web Company acquires 295 BTC

The Smarter Web Company, a London-listed web design and Bitcoin treasury firm, revealed on Tuesday that it acquired 295 BTC for 26.3 million pounds ($35.2 million) at an average price of $119,412 per Bitcoin. This purchase was partially funded by a $10.2 million equity raise completed on Monday. Additionally, The Smarter Web Company raised $21 million through a Bitcoin-denominated bond offering last week. The acquisition brings Smarter Web’s total Bitcoin holdings to 2,395 BTC, purchased at an average price of $110,555 each for a total cost of $264.8 million. At current prices, their stash is valued at about $284.8 million, reflecting an unrealized gain of approximately $20 million. With more than 1,500 BTC bought in July alone, Smarter Web has jumped from 36th to 23rd place in the global public company rankings and is targeting a top-20 spot in the coming weeks.

US could nationalize corporate Bitcoin

Corporate crypto treasuries have crossed the $100 billion mark, with Bitcoin treasury companies holding 791,662 BTC as of July, representing almost 4% of the circulating supply. However, some analysts warn that the growing concentration of assets in corporate hands could create a central point of vulnerability for Bitcoin. Crypto analyst Willy Woo suggested the US could one day move to nationalize these holdings, drawing parallels to the 1971 gold standard exit. Woo speculated the government might centralize corporate Bitcoin reserves and potentially “rug” them, similar to how gold convertibility was suspended under President Richard Nixon.

Frequently Asked Questions (FAQ)

Platform Overview

Q: What are corporate Bitcoin holdings? A: Corporate Bitcoin holdings refer to the amount of Bitcoin that publicly traded companies have purchased and hold on their balance sheets as part of their treasury reserves. Q: Which companies are among the top public holders of Bitcoin? A: According to data from BitcoinTreasuries.NET, some of the top public companies holding Bitcoin include Strategy, MARA, XXI, Bitcoin Standard Treasury Company, and Riot. Metaplanet has recently joined this list, ranking sixth globally. Q: How are companies financing these Bitcoin acquisitions? A: Companies are using various methods to finance Bitcoin acquisitions, including equity raises, bond offerings, and utilizing existing cash reserves, as seen with Metaplanet and The Smarter Web Company.

Market and Investment Concerns

Q: What is the total value of corporate Bitcoin treasuries? A: As of July, corporate crypto treasuries have crossed the $100 billion mark, with Bitcoin treasury companies alone holding approximately 791,662 BTC. Q: What are the potential vulnerabilities of concentrated corporate Bitcoin holdings? A: Some analysts warn that the growing concentration of Bitcoin assets in corporate hands could create a central point of vulnerability for the cryptocurrency. Q: What historical event is being used as a parallel for potential US government action on corporate Bitcoin? A: Crypto analyst Willy Woo draws a parallel to the 1971 gold standard exit, when the US government suspended gold convertibility, suggesting a similar possibility for nationalizing or centralizing corporate Bitcoin reserves.

Crypto Market AI's Take

The significant Bitcoin acquisitions by publicly listed companies like Metaplanet and The Smarter Web Company highlight a growing trend of institutional adoption and a belief in Bitcoin as a store of value. This strategy of accumulating Bitcoin as a treasury asset is increasingly being adopted by forward-thinking companies. At Crypto Market AI, we provide the advanced AI-driven market intelligence and trading tools necessary to navigate such evolving market dynamics, helping businesses and investors make informed decisions in the fast-paced world of digital assets. The strategic acquisition of Bitcoin by these companies suggests a long-term outlook on its potential as a digital reserve asset, aligning with the growing institutional interest we've been tracking.

Metaplanet, Smarter Web add almost 00M in Bitcoin to treasuries