Japanese investment firm MetaPlanet has significantly increased its Bitcoin (BTC) holdings, purchasing 42.47 BTC for over 400 million yen (approximately $2.8 million USD), according to a press release issued on Monday, July 8, 2024.
This acquisition brings the firm’s total Bitcoin assets to 203.743 BTC, valued at about 2.05 billion yen ($14.4 million USD).
The company reported an average purchase price of around 9.42 million yen per BTC ($66,000 USD) for this latest transaction.
This development follows MetaPlanet’s recent move to acquire over 1 billion yen ($6.26 million USD) worth of Bitcoin through bond issuance. The bonds, approved by the company’s management board, will be issued via EVO FUND with a 0.5% annual interest rate and are set to mature on June 25, 2025.
MetaPlanet’s Bitcoin-centric strategy, announced in in May 2024, is a response to Japan’s challenging economic landscape. The company cited high government debt, long-term negative real interest rates, and a weakening national currency as key factors driving its decision to adopt a Bitcoin-first and Bitcoin-only approach in its treasury management.
This investment strategy comes against the backdrop of Japan’s ongoing economic struggles, characterized by an ageing population, long-term stagnation, and a shrinking workforce. The Japanese yen has recently hit new all-time lows against major currencies like the Euro and US dollar. Local media attributes the yen’s three-year decline primarily to the widening gap between domestic and international interest rates, coupled with a growing trade deficit.
MetaPlanet’s pivot towards Bitcoin highlights a growing trend among Japanese companies seeking alternative stores of value amidst economic uncertainty, potentially signalling a shift in corporate treasury management strategies in the region.
READ MORE: Survey: Over Half of Japanese Investment Managers to Enter Digital Asset Market by 2027
Meanwhile, the company recently announced that it is creating a wholly-owned subsidiary in the British Virgin Islands (BVI) to optimize its Bitcoin-centric financial strategies. The new entity, set to launch in July 2024 with an initial capital of US$10,000, will focus on holding Bitcoins and engaging in Bitcoin-related business activities.
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