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Amid a weakening yen, Metaplanet, a Japanese investment giant, has strategically shifted to Bitcoin, purchasing 117.7 BTC worth $7.2 million. This move aligns with their new treasury strategy to bolster economic resilience against Japan's ongoing financial pressures.
Metaplanet Embraces Bitcoin Strategy, Bolsters Reserves Amidst Economic Uncertainty in Japan
In a recent report by Cointelegraph, Metaplanet, a publicly traded investment corporation, has introduced Bitcoin as a reserve asset in response to the Japanese yen's ongoing collapse.
Metaplanet is adopting a "strategic shift" in its treasury management strategy, focusing on Bitcoin-first and Bitcoin-only approaches, the Tokyo-based company stated on May 13.
"This move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen," the company stated.
The release must mention how much Bitcoin will be stored in Metaplanet's treasury. On May 10, Metaplanet announced that it purchased 117.7 BTC ($7.19 million) for an average price of around 10.2 million yen, or $65,000. Metaplanet's market capitalization is around 3.5 billion yen, roughly $20 million.
Metaplanet's Bitcoin adoption comes just a few weeks after the company announced its new Bitcoin-focused strategy in early April, including the completion of its first Bitcoin purchase at $6.5 million.
Metaplanet's Strategic Shift to Bitcoin Spurs Market Surge, Signals New Era for Investment Firm
The move gained great popularity on social media, resulting in a substantial price increase for Metaplanet shares on the Tokyo Stock Exchange. Metaplanet's shares, denoted by the numeric number 3350, surged beyond 35 JPY ($0.22) from 20 JPY ($0.13) hours after the company revealed its Bitcoin purchase in April.
Before its strategy changed, Metaplanet was engaged in traditional investment activities. Founded in 1999, it managed a hotel, financial services, and an investor relations consultancy.
The announcement came just a few days after Metaplanet hired famous market analyst Dylan LeClair as its director of Bitcoin strategy.
"This is just the beginning," Metaplanet CEO Simon Gerovich wrote in an X post on the company buying more Bitcoin on May 9.
The Japanese yen is expected to be the poorest performer among major currencies versus the US dollar in 2024, falling to historic lows in April not seen since the 1990s. According to local sources, the yen's decline in value during the last three years was mainly caused by the difference between domestic and foreign interest rates and a growing trade deficit.
The Japanese yen is expected to be the poorest performer among major currencies versus the US dollar in 2024, falling to historic lows in April not seen since the 1990s. According to local sources, the yen's decline in value during the last three years was mainly caused by the difference between domestic and foreign interest rates and a growing trade deficit.
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