The "Bitcoin shadow stock" MSTR continues to soar, with a market value exceeding the combined total of the world's top two gold mining companies
So far this quarter, MSTR's Bitcoin gains have reached 20.4%, and year-to-date they have reached 41.8%, an impressive performance that has attracted more companies to follow suit
Under the leadership of CEO Michael Saylor, MicroStrategy (MSTR) has rapidly risen with its "Bitcoin strategy."
On November 19, the "Bitcoin shadow stock" MSTR surged 11%, surpassing the combined market value of the world's top two gold mining companies, Newmont Corporation and Barrick Gold Corporation.
On November 16, MSTR announced the acquisition of 51,780 bitcoins for approximately $4.6 billion, bringing its total bitcoin holdings to 331,200. Quarter-to-date, the company's bitcoin returns have reached 20.4%, and year-to-date, they have soared to 41.8%.
Additionally, MSTR announced plans for a $1.75 billion private placement of convertible senior notes, which also suggests that the company may make more bitcoin acquisitions.
Famous financial commentator and gold advocate Peter Schiff commented on social platform X:
“This is crazy, I wonder when MSTR's market value will exceed the entire gold mining industry's market value!”
Schiff also stated that there is a positive feedback loop between MSTR's stock price and cryptocurrency investments:
“The higher MSTR's stock price, the more shares CEO Michael Saylor can sell, the more shares he sells, the more bitcoins he can buy, the more bitcoins he buys, the higher the bitcoin price goes, and when the bitcoin price rises, MSTR's stock price will rise even more... when will it end?”
However, the soaring stock price of MSTR has also raised concerns among some investors — MicroStrategy's market value is three times the value of its bitcoin holdings, approaching a historically high premium, which means that MicroStrategy's investors are effectively paying $250,000 for each bitcoin, while the market price is only around $80,000.
As of the time of writing, MSTR's stock price reached $430.54 per share. Over the past month, MSTR's stock price has surged nearly 100%.
Keeping Pace, Metaplanet Aims to Be the Japanese Version of MSTR
Following MSTR's example, Tokyo-listed company Metaplanet announced on Monday its plan to issue a one-year ordinary bond totaling 1.75 billion yen (approximately $11.3 million), with all funds raised to be used for purchasing bitcoin.
Metaplanet's main business was once budget hotels, but its revenue plummeted due to the pandemic, leading it to venture into Web3 and metaverse businesses, becoming a multi-business entity Metaplanet only started purchasing Bitcoin in April of this year to hedge against Japan's debt issues and yen fluctuations. According to statistics from Bitcoin Treasuries, Metaplanet has accumulated a total of 1,018 Bitcoins, worth approximately $92.33 million.
However, compared to MSTR's 331,200 Bitcoins, Metaplanet's holdings are still modest.
In June, Metaplanet announced that it had established a wholly-owned subsidiary in the British Virgin Islands to strengthen the strategic management of its Bitcoin assets.
Metaplanet's CEO Simon Gelovich stated in an interview, "Although it is difficult to become the Japanese version of MicroStrategy, we hope to provide Japanese investors with opportunities to access Bitcoin investments through similar strategies." Gelovich said:
"Regardless of short-term price fluctuations, we plan to continue purchasing Bitcoin, and we hope that in the future, Bitcoin will account for a significant portion of our balance sheet."
As of the time of publication, Metaplanet's stock price is reported at 2,237 yen per share. Over the past six months, Metaplanet's stock price has surged by 445%.
