Rival Japanese Bitcoin treasury firms’ share prices up as high as 7% above Nikkei index.
Metaplanet’s shares surged by about 7% on Thursday after the digital asset treasury firm revealed it has loaned $130 million to buy even more Bitcoin.
And the Japanese hotel operator-turned Bitcoin treasury firm isn’t alone: Other DAT shares also surged on the back of the news, even outpacing the Nikkei 225, an index of leading Tokyo Stock Exchange shares, which rose just over 1% on Thursday.
Remixpoint, an energy provider and former crypto exchange operator, has also seen its share prices rise by 8.7% in the past 24 hours. The company holds Bitcoin worth $128 million.
Rival DATs SBC Medical Group Holdings, Gumi, and Agile Media Network saw their own share prices grow by 5%, 3%, and 1% respectively.
The share price rise also outstrips the growth of Bitcoin prices, which rose by around 0.24% in the same period.
This appears to suggest that the market was reacting positively to the news of Metaplanet’s intention to ramp up its Bitcoin buying despite recent crypto market price drops.
The deal also comes as traders are growing weary of DATs.
While the business plan pioneered by Michael Saylor’s Strategy attracted hundreds of copycats earlier this year, many of these firms’ shares are now worth less than their underlying assets. This raises questions about their viability as businesses.
The interest rate on Metaplanet’s latest loan is floating, and will renew on a daily basis, Metaplanet wrote in a filing declaration.
This is the second such loan Metaplanet has taken to buy additional Bitcoin, although the lender’s identity “has not been disclosed due to their own wishes,” the Japanese crypto journalist K. Kobayashi wrote in the Japanese publication CoinPost.
Metaplanet said the terms of the loan allow the firm to pay its debt “at any time.”
The Japanese company has previously established a $500 million credit facility to help it continue its aggressive Bitcoin buying strategy.
Japanese firms are growing increasingly bullish on crypto adoption. Earlier this month, six of the country’s biggest asset managers signalled their interest in launching crypto funds for retail and institutional investors.
The group has assets under management worth a combined $2.5 trillion, and includes the wealth management arm of the Japanese megabank Mitsubishi UFJ.
Regulators are also mulling proposals to green-light the inclusion of crypto in mutual funds, in addition to pro-business crypto tax reforms.
