Key Points
- Japanese investment firm Metaplanet adds $6.94 million worth of Bitcoin to its holdings.
- The firm’s Bitcoin strategy is part of a larger plan to hedge against economic challenges in Japan.
Metaplanet, a Japanese investment firm, has increased its Bitcoin holdings by $6.94 million.
The company disclosed on October 1st that it had purchased an additional 107.913 Bitcoin, bringing its total holdings to 506.745 Bitcoin, currently valued at $32.45 million.
Adopting Bitcoin as a Reserve Asset
Since announcing its decision to use Bitcoin as a reserve asset, Metaplanet has invested 4.75 billion yen. The firm has been buying Bitcoin at an average price of ¥9.373.557 per coin, approximately $65,000.
This move is part of a larger strategy to protect against Japan’s economic challenges, including yen depreciation.
Since May 2024, Metaplanet has been diversifying its holdings into Bitcoin, a strategy similar to that of U.S. firm MicroStrategy. This has led to Metaplanet being referred to as “Asia’s MicroStrategy.”
Recent Investments and Future Plans
The firm recently invested $2 million into Bitcoin, buying 38.4 BTC. In August, Metaplanet secured a ¥1 billion loan from stakeholder MMXX Ventures and used half of it to purchase 57.103 BTC.
The company has also announced plans to raise $70 million through stock rights offerings, with over 80% of that amount being allocated towards its Bitcoin strategy.
To reinforce its commitment, Metaplanet has partnered with SBI VC Trade, a subsidiary of Japan’s financial giant SBI Group. This partnership will help Metaplanet ensure compliance, enhance tax efficiency, and provide corporate custody services and financing options using Bitcoin as collateral.
Japan’s Growing Interest in Crypto
Metaplanet’s strategy aligns with the growing interest in crypto from Japanese investment managers. A June survey revealed that many are considering exploring crypto investments.
Japan’s regulators are also considering easing crypto regulations to encourage more investment in the sector. The country’s Financial Services Agency is set to review its existing rules, which could lead to reduced taxes and enable domestic funds to invest in cryptocurrencies.
Earlier this year, the Ministry of Economy, Trade and Industry allowed local investment limited partnerships firms to invest in cryptocurrencies as part of former Prime Minister Fumio Kishida’s “new capitalism” policy.