Metaplanet, a Tokyo-based investment firm, recently made a significant purchase of 42.4 Bitcoin for ¥400 million ($2.4 million) to add to their holdings. This move is part of the company’s efforts to strengthen its long-term financial strategy by holding the cryptocurrency as a “strategic treasury reserve asset.”
The decision to invest in Bitcoin by Metaplanet is influenced by the ongoing economic pressures within Japan. The country is facing high government debt levels, extended periods of negative real interest rates, and a persistently weak yen. The yen has recently reached its lowest value against the U.S. dollar since 1986, and its weakest level against the euro on record.
Survey data from Nomura shows that over 500 investment managers in Japan are actively considering putting funds into crypto. Additionally, half of the respondents are open to utilizing stablecoins for settlements and daily transactions, indicating a growing interest in cryptocurrency investments among institutional investors in the country.
To finance its recent Bitcoin acquisitions, Metaplanet issued the second series of ordinary bonds through EVO FUND, raising over $6.2 million. These bonds, with an annual interest rate of 0.5%, are set to mature on June 25, 2025. Despite lacking collateral, the bonds are secured with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, owned by Metaplanet’s subsidiary Wen Tokyo Inc.
Metaplanet’s move to invest in Bitcoin aligns with a growing trend among companies to include the cryptocurrency as a strategic asset on their balance sheets. Companies such as MicroStrategy have been increasing their Bitcoin holdings, with MicroStrategy currently holding 226,331 BTC valued at $14.1 billion as of July 2024. The growing attraction to Bitcoin reflects increased mainstream acceptance amid fluctuating crypto market sentiments.
Metaplanet’s strategic acquisition of Bitcoin in response to economic pressures in Japan demonstrates the company’s forward-thinking approach to diversifying its holdings. By investing in Bitcoin as a strategic treasury reserve asset, Metaplanet is positioning itself to navigate the challenges of the current economic environment and capitalize on the potential growth opportunities presented by cryptocurrency investments.