Metaplanet has made its debut on global equity index, bringing the early-stage investment company neck-to-neck with its peers and rivals.
According to the official announcement, Metaplanet Inc. has participated for the first time in The CoinShares Blockchain Global Equity Index (“BLOCK Index”), a well-known equity index worldwide.
The news likely made the stock of the company rise, making it trade over 6% at the press time.
Metaplanet Now Stays In Tandem With Peers
Metaplanet’s inclusion in the BLOCK Index makes the Japanese firm a part of a larger global blockchain and crypto group that has a greater market hold in the industry.
Major international corporations like MicroStrategy, Coinbase, and SBI Holdings are included in the BLOCK Index. The announcement further highlights that Metaplanet will begin with a starting weight of about 2.5% in the BLOCK Index.
Managed by CoinShares, the BLOCK Index monitors the performance of publicly traded businesses involved in the blockchain and cryptocurrency industries. With 45 top companies from around the world, it gives investors a wide range of exposure to companies spearheading the advancement and application of blockchain technology.
Five criteria—earnings significance, earnings potential, development stage, competitive positioning, and sustainability—are used in the index’s stringent selection process, which is based on a blockchain scoring methodology.
Metaplanet’s BLOCK Index Inclusion Likely Fueled By BTC Buying
It is no secret to the market that Metaplanet has been following the footsteps of sector giant MicroStrategy in terms of Bitcoin buying.
This trend started in August 2020 when MicroStrategy started to amass Bitcoin. When the business announced that it had made its first purchase of 21,454 Bitcoin, which was then worth about $250 million, it made headlines.
With this strategy in mind, a ¥10 billion (~$70 million) stock acquisition rights issue, ordinary bonds, and exercised warrants are some of the financing mechanisms used in Metaplanet’s strategy to have huge BTC assets under its belt.
As UnoCrypto reported earlier, Metaplanet has reported outstanding returns for its shareholders, including an astounding yield of 116.4% in October 2024. Compared to the yield of 41.7% for the previous quarter, which was recorded between July and September, this performance indicates a significant increase in crypto interest in the Japanese diaspora.
This success has been largely attributed to the company’s aggressive Bitcoin acquisition strategy wherein, in October alone, they acquired over 450 BTC, more than doubling their Bitcoin holdings.
Due to this significant increase, Metaplanet now owns 855.5 BTC in total, with a market value of more than $56.1 million.