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- Metaplanet, a Japan-based investment firm, has acquired Bitcoin worth 42.4 BTC for ¥400 million ($2.4 million) to enhance its portfolio.
- Following this latest purchase, Metaplanet’s total Bitcoin holdings now amount to 203.7 BTC, acquired at an average price of around $62,000 per BTC.
- This acquisition occurs as Bitcoin is trading at $57,652, reflecting an 8% decline over the past week, as it attempts to regain the $60,000 threshold.
Metaplanet Expands Bitcoin Holdings
In a press release issued on July 8, Metaplanet, located in Tokyo, revealed its strategic Bitcoin acquisition.
This initiative is intended to bolster its long-term financial strategy by designating the cryptocurrency as a “strategic treasury reserve asset.” Importantly, this recent purchase elevates Metaplanet’s total Bitcoin assets to over 203 BTC.
The firm’s choice to invest in Bitcoin is influenced by ongoing economic challenges in Japan, which include significant government debt, prolonged periods of negative real interest rates, and a consistently weak yen.
Recently, the yen hit its lowest exchange rate against the U.S. dollar since 1986 and reached its weakest point against the euro on record.
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Simultaneously, survey results from Nomura indicate that over 500 investment managers in Japan are actively contemplating investments in cryptocurrency. Furthermore, half of the surveyed individuals are receptive to using stablecoins for transactions and settlements.
To fund its Bitcoin purchases, Metaplanet has recently issued a second series of ordinary bonds through EVO FUND, raising more than $6.2 million. These bonds, which carry an annual interest rate of 0.5%, are scheduled to mature on June 25, 2025.
It is noteworthy that although the bonds are unsecured, Metaplanet has backed them with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, which is owned by its subsidiary Wen Tokyo Inc.
Metaplanet’s Strategic Bitcoin Acquisition
After the Tokyo Stock Exchange closed on Monday, July 1, Metaplanet disclosed its acquisition of an additional 20.195 BTC for 200 yen (approximately $1.2 million). This followed a prior purchase of cryptocurrency valued at 250 million yen in June.
Despite its relatively modest size, with a valuation of $97 million, Metaplanet’s actions align with a rising trend among corporations to incorporate Bitcoin as a strategic asset on their balance sheets. This trend includes major firms like MicroStrategy, which currently holds 226,331 BTC valued at $14.1 billion as of July 2024. The company has been augmenting its Bitcoin holdings, acquiring 11,931 BTC for $786 million between April and June.
The increasing interest in Bitcoin signifies a growing mainstream acceptance amid varying sentiments in the crypto market, including potential asset liquidations from Mt. Gox and regulatory shifts in Germany.
