Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Japanese investment firm Metaplanet has disclosed the acquisition of more than 20.2 Bitcoin as part of its ongoing initiative to enhance its BTC reserves.
In a statement published on its website, the Tokyo-based company indicated that it had invested 200 million yen (approximately $1.2 million) to obtain the additional BTC, increasing its total holdings to 161.3 BTC.
Shortly after the conclusion of trading on the Tokyo Stock Exchange, the firm announced the purchase via its social media account, X.
*Metaplanet purchases additional 20.20 $BTC* pic.twitter.com/4tCRWAc2an
— Metaplanet Inc. (@Metaplanet_JP) July 1, 2024
Metaplanet’s $6M Bitcoin Investment Strategy
Just last week, Metaplanet detailed its plan to increase its bitcoin holdings with a $6 million investment.
The funds for this acquisition will be sourced from a recent bond issuance.
Metaplanet, referred to as “Asia’s MicroStrategy,” stated that its Bitcoin holdings intended for long-term retention will be recorded at their purchase price. These holdings are exempt from taxation based on end-of-term market value assessments.
Additionally, it noted that other Bitcoin assets will be assessed at market prices on a quarterly basis. Any profits or losses from these assessments will be classified under non-operating income or expenses.
In April, Metaplanet announced its choice to integrate Bitcoin into its treasury assets for several reasons.
Related Posts
Primarily, it seeks to reduce its exposure to the Japanese yen, which has been notably affected by Japan’s low-interest-rate climate.
The firm has also voiced concerns regarding the yen’s susceptibility and emphasized Bitcoin’s potential as a safeguard against inflation, a means for macroeconomic stability, and a source of long-term capital growth.
It is important to highlight that the decision to incorporate Bitcoin into its reserve assets has had a favorable effect on Metaplanet’s stock thus far.
Metaplanet’s strategy for accumulating Bitcoin mirrors the approach taken by MicroStrategy, a software company located in Tysons Corner, Virginia.
MicroStrategy has been persistently acquiring BTC for nearly four years and currently possesses over 226,000 BTC, which constitutes more than 1% of the total Bitcoin supply that will ever be created.
Corporate Treasurers Explore Bitcoin
The prevailing macroeconomic uncertainties, marked by rising inflationary pressures and geopolitical tensions, have led corporate treasurers to consider the addition of Bitcoin (BTC) as a reserve asset, according to the digital asset prime services platform Abra.
As reported, the company has recently introduced a service aimed at corporations looking to hold cryptocurrencies as reserve assets on their balance sheets.
It stated that there is a growing trend of non-crypto-native businesses showing interest in utilizing Bitcoin as a treasury reserve asset.
“We are increasingly seeing clients that are business owners and CEOs of small to medium-sized businesses (SMBs), particularly in the real estate sector, expressing interest in acquiring BTC for their treasury or borrowing against BTC to fund business requirements or real estate initiatives,” Marissa Kim, the Head of Asset Management at Abra Capital Management, remarked.
The post Metaplanet Purchases Another 20 Bitcoin, Bringing Total Tally to 161 BTC appeared first on Cryptonews.
