- Metaplanet became Asia’s second-largest corporate Bitcoin holder, with 1,018 BTC worth $92M, amid Japan’s economic woes.
- Amid Japan’s economic instability, Metaplanet bets big on Bitcoin, with 18.7% of its market value now in cryptocurrency.
- Metaplanet issues ¥1.75B in low-interest bonds to fund more Bitcoin purchases, with EVO FUND backing the high-risk plan.
Metaplanet, a player that aspires to be big in the investment industry in Japan, has recently taken the industry by storm as it steps into the world of Bitcoin. The company now has 1,018 BTC, which is worth about $92.18 million, making it the second largest corporate owner of Bitcoin in Asia. This is as a percentage of the entire 16.3 million Bitcoin which is currently in circulation is a significant holding in the highly volatile digital currency market.
Metaplanet revealed ¥1.75 billion ($11.8 million) of bonds which they issued at a record low of 0.36% interest rate. The proceeds will be used to buy even more Bitcoin and therefore the firm’s plan of using the cryptocurrency to overcome Japanese economic plight. All the bonds were placed with EVO FUND, which serves as a testament that investors support Metaplanet’s strategy of high risk, high return.
Metaplanet’s Strategic Bitcoin Bet
Metaplanet’s adventure into the world of Bitcoin started in April when the company bought 117.7 BTC for $7.19 million. The company saw the potential in the asset and decided to look for more capital and was able to secure a $6.8 million loan from MMXX Ventures for the further increase of the asset base. By October 2024, platform had purchased an additional 156 BTC for $10 million. The company has given significant investment towards Bitcoin as the cryptocurrency is 18.59% of company’s total market capitalization.
Hedging Against Economic Volatility
This is done at a time when Japan’s economy is very unstable and there is a lot of uncertainty in the region. The depreciation of the yen, increase in government debt and low interests rate have been some of the factors that have pointed to the fact that the conventional financial plans no longer meet the current needs.
In this context, Bitcoin has become an extremely powerful tool for Metaplanet, due to the fact that the economic conditions are quite unpredictable. As of April 2024, the company has included Bitcoin into the financial planning and chose to utilize Bitcoin as one of the main treasuries’ reserve.
Although the bonds are unsecured, Metaplanet has provided first-priority mortgage on the land and buildings of Hotel Royal Oak Gotanda where the subsidiary of platform, Wen Tokyo Inc, holds equity. This is in line with the company’s strategy of interlocking traditional and crypto assets in a bid to improve the company’s finances.
Metaplanet’s growing Bitcoin reserves show its trust in the cryptocurrency as a way of securing against economic turmoil. The future of the company depends solely on the value of Bitcoin and how the company is to shield itself from the fluctuating market price of the digital currency. Metaplanet is still very much focused on its mission and is now looking to weather the storm that is Japan’s economy through its expansion of its cryptocurrency investments.
