Metaplanet, an investment firm based in Japan, has recently made a significant purchase of 42.4 Bitcoin for ¥400 million ($2.4 million) to bolster its holdings. This move comes at a time when Bitcoin is trading at $57,652, down 8% from the previous week and struggling to surpass the $60,000 mark.
Investment Strategy
In a press release dated July 8, Metaplanet revealed that the acquisition of Bitcoin is part of its long-term financial strategy to hold the cryptocurrency as a “strategic treasury reserve asset.” With this latest purchase, Metaplanet’s total Bitcoin holdings now exceed 203 BTC.
Metaplanet’s decision to invest in Bitcoin is driven by ongoing economic challenges in Japan, including high government debt levels, extended periods of negative real interest rates, and a weakening yen. Interestingly, survey data by Nomura indicates that over 500 investment managers in Japan are considering allocating funds to cryptocurrencies, with half of them open to using stablecoins for settlements and daily transactions.
Bitcoin Acquisition Funding
To finance its Bitcoin acquisitions, Metaplanet 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. Notably, the bonds are unsecured but backed by a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, owned by its subsidiary Wen Tokyo Inc.
Following its previous purchase of 250 million yen worth of Bitcoin in June, Metaplanet acquired an additional 20.195 BTC for 200 yen (approximately $1.2 million) after the Tokyo Stock Exchange closed on July 1. Despite its relatively modest holdings, valued at $97 million, Metaplanet’s move reflects a broader trend among companies to include Bitcoin on their balance sheets.
Growing Trend of Bitcoin Investments
This trend is exemplified by companies like MicroStrategy, which currently holds 226,331 BTC valued at $14.1 billion as of July 2021. MicroStrategy has been steadily increasing its Bitcoin holdings, acquiring 11,931 BTC for $786 million between April and June. The growing interest in Bitcoin as a strategic asset reflects its growing mainstream acceptance amid changing sentiments in the cryptocurrency market.
Metaplanet’s strategic acquisition of Bitcoin underscores its commitment to diversifying its portfolio and incorporating digital assets into its long-term financial strategy. This move aligns with the broader trend of companies embracing Bitcoin as a strategic asset, signaling a broader shift towards mainstream adoption of cryptocurrencies in the financial sector.
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