Strategy and Metaplanet Accumulate More Than 23,000 BTC in Two Weeks Amidst Legal Challenges for Strategy

Two major corporate players in the Bitcoin space, Strategy (previously known as MicroStrategy) and the Japan-based Metaplanet, have notably increased their holdings in cryptocurrency this week.

In separate statements made on May 19, the companies revealed that they collectively purchased 8,394 BTC, investing nearly $870 million. This comes on the heels of their earlier acquisitions from the previous week, where they added close to 15,000 BTC.

This surge in investment has led both firms to amass over 23,000 BTC, valued at more than $2 billion in just two weeks, reflecting their strong belief in Bitcoin’s long-term potential.

Strategy reaches 576K BTC despite investor concerns

On May 19, Strategy disclosed to the US Securities and Exchange Commission (SEC) that it secured 7,390 BTC between May 12 and May 18.

The firm’s expenditure of $764.9 million translates to an average purchase price of $103,498 per coin.

The latest acquisition was financed through share sales, generating $705.7 million from over 1.7 million shares of MSTR and an additional $59.7 million from 621,555 shares of STRK.

This latest buy raises the company’s total holdings to 576,230 BTC, establishing it as the largest Bitcoin holder among publicly traded entities.

According to the SEC submission, these assets were procured at a total of approximately $40.18 billion, which suggests an average Bitcoin purchase price of $69,726. At current market valuations, the firm’s holdings are worth around $59.09 billion, presenting nearly $19 billion in unrealized profits.

Despite these financial gains, Strategy’s focus on Bitcoin seems to have attracted legal scrutiny from some discontented shareholders.

On May 18, law firm Pomerantz LLP initiated a class action lawsuit without a lead plaintiff, alleging that Strategy misled its shareholders on the same day the firm filed more than 50 other class-action suits against various companies.

The lawsuits contend that the firm exaggerated Bitcoin’s return potential while minimizing the inherent risks associated with its volatility. They further claim that the company’s public statements did not adequately convey material risks, potentially misleading stakeholders about Bitcoin’s future prospects.

This law firm is known for filing numerous similar lawsuits, raising questions about the actual number of affected investors.

Metaplanet’s stock outshines Toyota following Bitcoin investments

Metaplanet announced that it acquired 1,004 BTC for around $104.6 million.

This acquisition marks the firm’s second transaction exceeding 1,000 BTC, increasing its total holdings to 7,800 BTC, approximately valued at $807 million.

The Tokyo-listed company commenced its Bitcoin accumulation in April 2024, with a target of reaching 10,000 BTC by the conclusion of 2025. As per Bitcoin Treasuries data, it is now recognized as Asia’s largest public Bitcoin holder and ranks among the top ten globally.

Additionally, Metaplanet’s cryptocurrency strategy appears to be positively influencing its stock performance.

On May 19, CEO Simon Gerovich announced that Metaplanet’s stock ranked as the ninth most actively traded on Japan’s exchanges, with a daily trading volume of 61.69 billion yen (approximately $425 million), outpacing well-known corporations like Toyota, SoftBank, and Nintendo.