Japanese Listed Firm Allocates 117 BTC as Reserve

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May 13, 2024 - 16:07
May 13, 2024 - 16:07
Japanese Listed Firm Allocates 117 BTC as Reserve
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Metaplanet, a publicly traded investment firm, has recently embraced Bitcoin as a reserve asset due to ongoing depreciation of the Japanese yen. The company's shift in treasury management, prioritizing Bitcoin as a primary asset, was officially announced on May 13. They stated:

"This move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen."

Regarding their Bitcoin holdings, Metaplanet has accumulated approximately 117.7 BTC valued at $7.2 million. While the exact amount they plan to hold in their treasury wasn't disclosed, their recent purchase of 117.7 BTC at an average price of around 10.2 million yen, or $65,000, was made public on May 10. Metaplanet's market value currently stands at around 3.5 billion yen, or roughly $20 million.

This strategic shift towards Bitcoin follows their earlier announcement in April about a Bitcoin-focused strategy, which began with a $6.5 million Bitcoin purchase. This move garnered significant attention on social media and led to a notable increase in Metaplanet shares on the Tokyo Stock Exchange.

(Source: CNBC)

Before venturing into Bitcoin, Metaplanet mainly focused on traditional investments, operating in areas such as the hotel business, investment services, and investor relations consultancy since its establishment in 1999.

In a recent development, Dylan LeClair, a prominent market researcher, was appointed as the director of Bitcoin strategy at Metaplanet. CEO Simon Gerovich expressed optimism, stating, "This is just the beginning," in a post about the company's Bitcoin acquisitions on May 9.

The depreciation of the Japanese yen against major currencies, especially the U.S. dollar, has been a significant factor in Metaplanet's strategic decision. This decline has been attributed to various economic factors such as interest rate differentials and a growing trade deficit, with the yen reaching record lows in April not seen since the 1990s.