Key Takeaways
- Metaplanet Inc. invests 8.5 billion yen in Bitcoin amid volatility.
- The firm sees Bitcoin as a hedge against currency depreciation.
- Metaplanet adds 42.5 BTC, bringing its total to 203.7 BTC.
Metaplanet Inc. has announced a significant investment in Bitcoin, allocating 8.5 billion yen (approximately $58.76 million). This move is part of the company’s strategy to enhance its financial reserves in response to Japan’s recent market turbulence.
The decision to raise funds was made during a Board of Directors meeting, where Metaplanet approved a gratis allotment of its 11th series of stock acquisition rights to all common shareholders. The goal is to raise roughly 10 billion yen (around $69.13 million), with most of these funds dedicated to Bitcoin.
As of September 5, all common shareholders will receive the stock acquisition rights, and the allotment will take effect from September 6.
Strategy
Metaplanet’s decision to invest heavily in Bitcoin is based on the potential for long-term appreciation and as a hedge against fiat-currency depreciation.
The move comes in the wake of the Japanese stock market’s worst one-day drop since 1987, which followed the Bank of Japan’s rate increase on short-term government bonds from 0% to 0.25%. This shift triggered a massive sell-off in Bitcoin, causing it to fall 18%.
On July 8, Metaplanet purchased $2.5 million worth of Bitcoin, adding 42.5 BTC to its holdings, bringing the total to 203.7 BTC. CEO Simon Gerovich highlighted the strategic pivot to Bitcoin, emphasizing the cryptocurrency’s role as a key monetary asset in the company’s treasury.
