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Japanese investment firm Metaplanet has expanded its Bitcoin holdings by acquiring an additional 20.38 Bitcoin, valued at $1.2 million.
The firm announced the purchase on Monday, following a ¥200 million ($1.4 million) Bitcoin acquisition the previous week. Earlier this month, the company also added 42.47 Bitcoin to its portfolio, worth $2.3 million.
This latest acquisition marks Metaplanet’s fourth Bitcoin purchase in July, increasing its total holdings to nearly 246 BTC, with an estimated value of $16.7 million.
*Metaplanet purchases additional 20.38 $BTC* pic.twitter.com/xt1AjSWPNL
— Metaplanet Inc. (@Metaplanet_JP) July 22, 2024
Following Monday’s transaction, the firm indicated that it had completed the acquisition of Bitcoins valued at 1 billion yen ($6 million).
Metaplanet’s Bitcoin Strategy Protects Against Inflation
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Since April, Metaplanet has been acquiring Bitcoin to safeguard itself against the depreciation of the Japanese yen. The investment firm asserts that it is utilizing Bitcoin as a hedge against inflation and economic uncertainty stemming from the nation’s low-interest rates.
Adopting a strategy similar to that of the US firm Microstrategy, Metaplanet has garnered the moniker “Asia’s Microstrategy.” To continue accumulating Bitcoin, the firm intends to utilize long-term yen debt and may occasionally issue new shares, moving away from the increasingly weak Japanese currency.
Metaplanet’s stock price has surged, positioning it among the top-performing companies listed in Japan. Its stock jumped 25% on Monday and has increased over 104% in just the past month.
Long-Term Bitcoin Holdings Exempt from Market Value Tax
The firm has stated that its Bitcoin assets intended for long-term retention will be recorded at their acquisition cost. These assets will not be subject to taxation based on market value assessments at the end of the period.
Furthermore, the company noted that its other Bitcoin holdings will be evaluated at market values on a quarterly basis. Any resulting gains or losses from these evaluations will be classified as non-operating income or expenses.
The post Japan’s Metaplanet Soars 25% As Bitcoin Assets Grow By $1.2M appeared first on Cryptonews.
