Metaplanet, an investment firm based in Japan, recently made a significant move by acquiring 42.4 Bitcoin for ¥400 million ($2.4 million) to add to its portfolio. This decision comes at a time when Bitcoin is trading at $57,652, showing an 8% decrease over the past week as it struggles to reach the $60,000 mark.
In a press release issued on July 8, Metaplanet, headquartered in Tokyo, announced its strategic purchase of Bitcoin with the intention of enhancing its long-term financial strategy. By holding the cryptocurrency as a “strategic treasury reserve asset,” Metaplanet aims to strengthen its position in light of economic challenges in Japan, such as high government debt levels, prolonged periods of negative real interest rates, and a 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.
Metaplanet’s decision to invest in Bitcoin is part of a larger trend in Japan, with over 500 investment managers actively considering allocating funds to cryptocurrencies. Additionally, half of the respondents in a survey conducted by Nomura expressed openness to using stablecoins for settlements and daily transactions.
To fund its Bitcoin acquisitions, Metaplanet recently issued the second series of ordinary bonds through EVO FUND, raising over $6.2 million. These bonds, carrying an annual interest rate of 0.5%, are scheduled to mature on June 25, 2025. Despite the lack of collateral, Metaplanet has secured the bonds with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, which is owned by its subsidiary Wen Tokyo Inc.
Following the closing of the Tokyo Stock Exchange on Monday, July 1, Metaplanet announced another acquisition of 20.195 BTC for 200 yen (approximately $1.2 million). This purchase, along with a previous investment of 250 million yen in June, has increased Metaplanet’s total Bitcoin holdings to over 203 BTC.
Although Metaplanet’s Bitcoin holdings are relatively modest compared to other companies, such as MicroStrategy, which holds a significant amount of BTC valued at $14.1 billion, the move reflects a broader trend of companies including Bitcoin as a strategic asset on their balance sheets. MicroStrategy has been actively increasing its Bitcoin holdings, acquiring a substantial amount between April and June.
Overall, the growing interest in Bitcoin among companies like Metaplanet and MicroStrategy highlights the increasing mainstream acceptance of cryptocurrencies amidst changing market sentiments and regulatory developments. This shift towards adopting Bitcoin as a strategic asset underscores the evolving landscape of the financial industry and the growing importance of digital assets in investment strategies.