In a bold statement of its long-term commitment to cryptocurrency, Japanese investment firm Metaplanet has purchased an additional ¥300 million ($2 million) in Bitcoin according to a recently disclosed regulatory filing on September 10th. The purchase brings the firm’s total Bitcoin holdings to more than 398.8 BTC, or approximately $22.7 million at current market prices.
Bitcoin Accumulation for a Strategic Reserve
The aggressive acquisition of Bitcoin by Metaplanet started this year and has made the company one of Japan’s most aggressive corporate investors in cryptocurrency. This latest purchase of 38.4 BTC continues its strategic accelerating build-up reserve diversification, with Bitcoin right at the core.
But this decision comes when the Japanese economy is still trying to grapple with financial turmoil, especially since the yen’s decline. What’s more, against further financial instability, Metaplanet turned to alternative assets such as Bitcoin, with the Bank of Japan hiking its rate to 0.25% for the first time since negative or near-zero rates were introduced. A similar case could be drawn from that of MicroStrategy in the U.S., where one of the biggest financial plays is using Bitcoin in some form of reserve asset.
Partnership with SBI VC Trade to Strengthen Crypto Position
Last week, Metaplanet moved further in the right direction to consolidate its position in the crypto world. It announced a strategic investment partnership deal with SBI VC Trade, a subsidiary of Japan’s leading financial service provider SBI Group. The move is expected to leverage the corporate custody services and secure financing with Bitcoin as collateral for higher compliance and tax efficiency when Metaplanet decides to keep on expanding its cryptocurrency portfolio.
This cooperation will likely equip Metaplanet with better tools to manage the volatility of Bitcoin while treading in a regulatory-compliant manner. This is a huge step on the part of the company into embedding cryptocurrency more deeply in its corporate infrastructure.
Increasing Crypto Holdings Along With Stock Surge
Metaplanet announced earlier in the year that it would be looking to raise $70 million by offering stock rights and putting 80% of those proceeds toward Bitcoin buys. That commitment to expanding its Bitcoin position has served the shareholders of the firm so well. Its stock is up more than 545% year to date, greatly benefiting from the increasing popularity of Bitcoin as a hedge against traditional financial market volatility.
The performance of the stock reflects the wider trend of growing institutional participation in cryptocurrency. Even as Bitcoin’s utility and legitimacy as a store of value proliferate-say in countries that are facing monetary issues-the money is going more to the likes of Metaplanet, for cashing in on their early mover advantage.
Bitcoin’s Role in the Economic Future of Japan
While Japan has struggled with economic uncertainty and a depreciating yen, Metaplanet’s Bitcoin-heavy approach is a focal trend by corporations toward diversification away from more traditional forms of reserves. It says a lot-the recent move of the Bank of Japan to stabilize the yen for perhaps an increasingly evolved role that Bitcoin may play in the core of corporate strategies for cash holding.
To the continuous investment in Bitcoin, for Metaplanet, it is first of all a belief in the future of cryptocurrency, but at the same time, the modest movement of Japan’s financial landscape, where alternative assets like Bitcoin are turning into an integral part.
