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Japan's Metaplanet Bolsters Bitcoin Holdings with 1B Yen Amid Economic Uncertainty

Japan's Metaplanet strengthens its Bitcoin holdings with a 1B yen investment.

Mon, 24 Jun 2024, 09:45 am UTC

Metaplanet, a prominent Japanese investment company, has invested 1 billion yen in Bitcoin, reinforcing its strategic focus on cryptocurrency amid Japan's economic challenges.

Expanding Bitcoin Holdings

The Bitcoin holdings of Metaplanet, a significant Japanese investment corporation, have been expanded as a result of a recent purchase. This action exemplifies the rising confidence the company has in Bitcoin as a valuable asset and is in line with the broader trend of an increasing number of institutions investment in cryptocurrency.

According to Cointelegraph, the company announced in a notice that was published on Monday, June 24, that its board of directors had supported the decision, adding that Bitcoin would be "for long-term holding." The bonds would pay a rate of 0.5% per annum, as disclosed in a separate announcement.

According to Google Finance, the stock price of Metaplanet had an increase of almost 500% so far this year, and on Monday, the company's shares continued their upward trend, increasing by 11.5% to trade at 96 yen ($0.60).

Utilizing Bond Proceeds for Bitcoin Purchase

Plans to purchase Bitcoin worth one billion yen, which is equivalent to approximately $6.25 million, were disclosed earlier today. In order to execute this purchase, the corporation stated that it would use the funds obtained from the sale of bonds that occurred not too long ago.

For the foreseeable future, Metaplanet intends to maintain its Bitcoin holdings. On the other hand, if they do wind up using it for day-to-day operations or other requirements, they will record an equal amount of current assets on their books.

Addressing Economic Pressures through Bitcoin

Metaplanet has made the decision to purchase Bitcoin as a means of safeguarding itself against the escalating debt issues in Japan and the deteriorating value of the yen. Coingape shares that the Japanese government has a large debt load, and the economy hasn't benefited from interest rates remaining below zero for some time.

Following the announcement made by Metaplanet on June 11 that it had acquired 23.25 BTC, the intended purchase would add to the company's existing cryptocurrency stack, which reached 141.07 BTC.

Midway through the month of May, it made its initial purchase of 117 Bitcoins, announcing that it was going to adopt a "Bitcoin-first, Bitcoin-only approach" to its treasury as a "direct response to sustained economic pressures in Japan."

With an average purchase price of 10.28 million yen, or $65,365 per Bitcoin, as stated in Metaplanet's most recent holdings report from earlier in June, the company is already in the red with regard to its strategy.

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