Metaplanet Boosts Bitcoin Portfolio with $2.4 Million Acquisition
Metaplanet, a Japanese investment company, has recently acquired 42.4 Bitcoin for ¥400 million ($2.4 million) to bolster its existing cryptocurrency holdings. This move comes amidst Bitcoin’s current trading value of $57,652, reflecting an 8% decline over the past week as it struggles to surpass the $60,000 threshold.
In a press statement released on July 8, Metaplanet, headquartered in Tokyo, disclosed its strategic investment in Bitcoin. The primary objective behind this acquisition is to enhance its long-term financial strategy by utilizing the cryptocurrency as a crucial component of its “strategic treasury reserve asset.” With this latest purchase, Metaplanet’s total Bitcoin reserves now exceed 203 BTC.
Metaplanet’s decision to venture into Bitcoin investments is a response to the prevailing economic challenges in Japan. These challenges include elevated government debt levels, prolonged periods of negative real interest rates, and a consistently weak yen. Notably, the yen recently hit its lowest point against the U.S. dollar since 1986 and recorded its weakest level against the euro to date.
Furthermore, research data from Nomura indicates that over 500 investment managers in Japan are actively contemplating allocating funds to cryptocurrencies. Additionally, half of the survey respondents are open to utilizing stablecoins for settlements and daily transactions.
To fund its Bitcoin acquisitions, Metaplanet recently issued the second series of ordinary bonds through EVO FUND, raising more than $6.2 million. These bonds, offering an annual interest rate of 0.5%, are scheduled to mature on June 25, 2025. Despite the absence of collateral, Metaplanet has secured these bonds with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, which is owned by its subsidiary Wen Tokyo Inc.
Following the closure of the Tokyo Stock Exchange on July 1, Metaplanet revealed its purchase of an additional 20.195 BTC for 200 yen (approximately $1.2 million). This acquisition followed a prior investment of 250 million yen in Bitcoin made in June. While Metaplanet’s size, valued at $97 million, may seem modest, the company’s decision aligns with the increasing trend among firms to incorporate Bitcoin as a strategic asset in their balance sheets. This trend is exemplified by companies like MicroStrategy, which currently holds 226,331 BTC valued at $14.1 billion as of July 2024. MicroStrategy has been progressively expanding its Bitcoin holdings, acquiring 11,931 BTC for $786 million between April and June.
The growing interest in Bitcoin reflects its rising mainstream acceptance amidst fluctuating sentiments in the crypto market, including potential asset liquidations from Mt. Gox and regulatory adjustments in Germany.
