Metaplanet, a prominent Japanese investment firm, has recently made a significant purchase of Bitcoin, expanding its Bitcoin holdings. This move reflects the firm’s growing confidence in Bitcoin as a valuable asset and aligns with the broader trend of institutional investment in cryptocurrency.
Often referred to as “Asia’s MicroStrategy,” Metaplanet disclosed its massive Bitcoin purchase of ¥1 billion ($6.25 million) on Monday. The funds for this acquisition were obtained through the company’s recent bond issue. By incorporating Bitcoin into its investment strategy, Metaplanet aims to diversify its portfolio and protect against economic uncertainties.
The decision to purchase Bitcoin was approved by Metaplanet’s directors, who had previously revealed plans to acquire Bitcoin worth 1 billion yen (approximately $6.25 million). The company’s recent bond issue funded this acquisition. Metaplanet intends to hold onto its Bitcoin holdings for the foreseeable future, but if needed for operational expenses or other purposes, they will be recorded as current assets.
This is not the first time Metaplanet has dealt with Bitcoin. Over the past two months, the company has made three separate Bitcoin purchases. With its most recent acquisition of 23.25 BTC, valued at around $1.59 million, Metaplanet’s total Bitcoin holdings have increased to 141.07 BTC. After the purchase on June 24, the firm’s Bitcoin holdings will exceed 240 BTC, equivalent to approximately $15 million at the current price.
Metaplanet’s decision to invest in Bitcoin is driven by the depreciating yen and Japan’s mounting debt. With a significant debt burden and an economy that has not benefitted from zero interest rates, the firm seeks to hedge its bets by embracing Bitcoin.
In other crypto news, there has been a sharp decline in major cryptocurrencies.
