Metaplanet Expands Bitcoin Holdings With $2.4 Million Purchase

Metaplanet, an investment firm based in Japan, has made a purchase of Bitcoin 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 past week, struggling to regain the $60,000 mark.

Metaplanet Expands Bitcoin Holdings

In a July 8 press release, Tokyo-based Metaplanet announced its strategic acquisition of Bitcoin. This move aims to improve its long-term financial strategy by keeping 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 the ongoing economic pressures in Japan. These include high levels of public debt, prolonged periods of negative real interest rates and a persistently weak yen. The yen recently hit its lowest value against the US dollar since 1986 and hit its weakest level against the euro in history.

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

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

In particular, although the bonds are unsecured, Metaplanet has secured them with a first priority mortgage on the land and building of the Royal Oak Gotanda Hotel, 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 an earlier 250 million yen purchase 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 like MicroStrategy, which currently holds 226,331 BTC valued at $14.1 billion by July 2024. The company has been increasing its Bitcoin holdings, acquiring 11,931 BTC for $786 million between April and June.

Bitcoin’s growing traction reflects greater mainstream acceptance amid fluctuating sentiment in the crypto market, including potential asset liquidations of Mt. Gox and regulatory changes in Germany.

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