Metaplanet, a Tokyo-based company that offers infrastructure for Web3, experienced a significant surge in its stock price – approximately 90% increase in just two days – following the publicized collaboration with Sora Ventures, Morgan Creek Capital’s Mark Yusko, and other investors. This partnership brought about an addition of $6.65 million worth of Bitcoin to Metaplanet’s financial holdings.
Today, we’re excited to share a significant change in our financial approach: Starting now, Bitcoin will serve as the primary treasury asset for our Company, with an initial investment of JPY 1 billion. This transition signifies more than just adopting digital currency; it represents:
— Metaplanet Inc. (@Metaplanet_JP) April 8, 2024
Red Planet Business, formerly recognized for running budget hotels under its name, is now focusing on developing Web3 software and announced its intention to decrease reliance on the Japanese yen.
In a recent communication to shareholders, the company explained that the yen has weakened over the past generation due to Japan’s persistently low-interest rates. These rates have eroded the yen’s status as a significant global currency. Notably, the Bank of Japan increased its benchmark interest rate for the first time in seventeen years in March, lifting it from a negative 0.1% to between 0% and 0.1%.
The company explains that it intends to add Bitcoin to its financial reserves for several reasons. Firstly, as a means to protect against inflation. Secondly, as a useful instrument for economic durability in uncertain times. Lastly, as a foundation for potential growth and profitability in the long term.
Furthermore, this method mirrors MicroStrategy’s actions announced in 2020 to amass more Bitcoins. Consequently, the price swings of MicroStrategy’s stock have often reflected Bitcoin’s value fluctuations, signaling investors’ sentiments towards the cryptocurrency market.
According to bitcointreasuries.net’s data, MicroStrategy currently owns over 214,000 Bitcoins with a total value exceeding $15 billion.
Jason Fang, as managing partner and co-founder of Sora Ventures, played a role in the teamwork that led to Bitcoin’s addition to Metaplanet’s financial records.
On X’s latest post, Fang highlighted the advantage of investing in a publicly-traded Japanese company that deals with cryptocurrency, instead of owning the digital currency itself. The reason being, holding cryptocurrencies directly results in significant taxes on unrealized gains.
Ever since its introduction, this tax policy has been a source of debate among lawmakers who have made numerous adjustments to it. In the meantime, Japan’s National Tax Agency announced in June 2023 that cryptocurrency startup-issued tokens would be exempt from these regulations.
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2024-04-09 14:44