Metaplanet Increases Bitcoin Holdings with 1 Billion Yen Investment amidst Yen Volatility
Metaplanet, a publicly traded company in Japan, is facing financial challenges and has decided to turn to Bitcoin as a solution. The board of Metaplanet has approved a significant investment of 1 billion yen (approximately USD 6.26 million) in Bitcoin. This investment is being funded by the proceeds from the company’s second issuance of ordinary bonds, which have an annual interest rate of 0.5% and mature in June 2025.
The decision to invest in Bitcoin is part of Metaplanet’s strategy to mitigate risks associated with Japan’s high debt levels and the resulting volatility of the yen. Japan’s net debt to GDP ratio was the highest among G7 countries in 2023, standing at approximately 159%. This move by Metaplanet is similar to the strategy adopted by MicroStrategy, a U.S. company known for its large Bitcoin holdings.
On June 11, Metaplanet further increased its Bitcoin reserves by purchasing an additional 23.351 Bitcoins worth $1.6 million. The average price per Bitcoin was 10,706,180 yen, bringing Metaplanet’s total Bitcoin holdings to 141.0727 Bitcoins, valued at 1.45 billion yen. The company’s average acquisition price for Bitcoin is 10,278,391 yen per Bitcoin.
By embracing Bitcoin as a reserve asset, Metaplanet aims to reduce its exposure to the yen and hedge against Japan’s debt burden. The company plans to raise an additional ¥935 million (about €5 million) through “Stock Acquisition Rights” to purchase more Bitcoin, following the trend of U.S. companies diversifying into cryptocurrencies.
The increasing adoption of Bitcoin by institutional investors has led to a decrease in BTC on centralized exchanges recently. Traders are experiencing fear, uncertainty, and doubt (FUD) as Bitcoin’s price fluctuates between $65,000 to $66,000. Despite this, large investors are accumulating Bitcoin, which historically signals an upcoming price increase. This suggests that patient traders may see potential gains in the market in the near future.