In a bold move, Metaplanet, an investment firm based in Japan, recently made a significant Bitcoin purchase worth 42.4 Bitcoin for ¥400 million ($2.4 million) to add to its holdings. This decision comes at a time when Bitcoin is trading at $57,652, down 8% over the last week, and struggling to reclaim the $60,000 mark.
Metaplanet announced in a press release dated July 8, that this strategic acquisition of Bitcoin is aimed at improving its long-term financial strategy by holding the cryptocurrency as a “strategic treasury reserve asset.” With this latest purchase, Metaplanet’s total Bitcoin holdings now exceed 203 BTC.
Investing in Bitcoin Amid Economic Pressures in Japan
Metaplanet’s decision to invest in Bitcoin is influenced by the ongoing economic pressures within Japan. These pressures include high government debt levels, extended periods of negative real interest rates, and a persistently weak yen. The yen recently hit its lowest value against the U.S. dollar since 1986 and reached its weakest level against the euro on record.
To finance its Bitcoin acquisitions, Metaplanet recently issued the second series of ordinary bonds via 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. Even though the bonds lack collateral, Metaplanet has secured them with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, owned by its subsidiary Wen Tokyo Inc.
Continued Investments in Bitcoin
After the Tokyo Stock Exchange closed on Monday, July 1, Metaplanet announced another purchase of 20.195 BTC for 200 yen (approximately $1.2 million). This followed a previous purchase of 250 million yen worth of Bitcoin in June. Despite the relatively modest size of Metaplanet’s holdings, valued at $97 million, the firm’s move aligns with a growing trend among companies to include Bitcoin as a strategic asset on their balance sheets.
The growing attraction to Bitcoin is evident in the actions of companies like MicroStrategy, which currently holds 226,331 BTC valued at $14.1 billion as of July 2024. MicroStrategy has been increasing its Bitcoin holdings, acquiring 11,931 BTC for $786 million between April and June of that year. This trend reflects increased mainstream acceptance of Bitcoin amidst fluctuating crypto market sentiments and regulatory changes in different countries, including Germany.
Through its strategic investments in Bitcoin, Metaplanet is positioning itself to navigate the complex economic landscape and potentially benefit from the long-term growth prospects of the cryptocurrency.
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