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Metaplanet Expands Bitcoin Holdings with $2.4 Million Purchase

Metaplanet, an investment firm based in Japan, has made a Bitcoin purchase worth 42.4 Bitcoin for ¥400 million ($2.4 million) to add to its holdings.

This comes as Bitcoin trades at $57,652, down 8% over the last week, struggling to reclaim the $60,000 mark.

Metaplanet Expands Bitcoin Holdings

In a press release dated July 8, Tokyo-based Metaplanet announced its strategic acquisition of Bitcoin. This move aims to improve its long-term financial strategy by holding the cryptocurrency as a “strategic treasury reserve asset.” Notably, the latest purchase brings Metaplanet’s total Bitcoin holdings to over 203 BTC.

Metaplanet’s decision to invest in Bitcoin stems from ongoing economic pressures within Japan. These include high government debt levels, extended periods of negative real interest rates, and a persistently weak yen. The yen recently reached its lowest value against the U.S. dollar since 1986 and gained its weakest level against the euro on record.

At the same time, survey data by Nomura shows that more than 500 investment managers are actively considering putting funds into crypto in Japan. In addition, half of the respondents are open to utilizing stablecoins for settlements and daily transactions.

To finance its Bitcoin acquisitions, Metaplanet recently issued the second series of ordinary bonds via EVO FUND, raising over $6.2 million. These bonds, carrying an annual interest rate of 0.5%, are set to mature on June 25, 2025.

Notably, although the bonds lack collateral, Metaplanet has secured them with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, owned by its subsidiary Wen Tokyo Inc.

Metaplanet’s Strategic Bitcoin Acquisition

After the Tokyo Stock Exchange closed on Monday, July 1, Metaplanet announced its acquisition of an additional 20.195 BTC for 200 yen (approximately $1.2 million). This followed a previous purchase of 250 million yen worth of the cryptocurrency in June.

Despite its relatively modest size, valued at $97 million, Metaplanet’s move aligns with a growing trend among companies to include Bitcoin as a strategic asset on their balance sheets. This trend includes large companies such as MicroStrategy, which currently holds 226,331 BTC valued at $14.1 billion as of July 2024. The company has been increasing its Bitcoin holdings, acquiring 11,931 BTC for $786 million between April and June.

The growing attraction to Bitcoin reflects increased mainstream acceptance amid fluctuating crypto market sentiments, including potential asset liquidations from Mt. Gox and regulatory changes in Germany.

Pos Metaplanet Expands Bitcoin Holdings with $2.4 Million Purchase muncul pertama kali di CryptoPotato.


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