As a seasoned crypto investor with a keen interest in the Japanese market, I find Metaplanet’s latest move to buy Bitcoin for long-term holding both intriguing and validating. Having witnessed the economic pressures facing Japan, including high government debt levels, prolonged periods of negative real interest rates, and a weak yen, I can relate to the rationale behind Metaplanet’s decision to allocate resources towards Bitcoin as a strategic treasury reserve asset.
Tokyo-based Metaplanet, a public consulting firm, has invested approximately 700 million yen in purchasing Bitcoin for long-term investment purposes.
Metaplanet Inc., a Tokyo-based investment company focusing on hotel and crypto consulting, announced on June 24th that they secured approximately ¥1 billion yen by selling the second installment of ordinary bonds. This fund will be used to purchase Bitcoin for long-term storage.
The company stated that its fundamental approach is to keep Bitcoin for extended periods. However, they didn’t dismiss the idea of utilizing crypto for various functions or transactions in another context. In a different submission, this Japanese firm based in Tokyo announced plans to issue bonds through EVO FUND, carrying an annual yield of 0.5%. These securities will reach maturity on June 25, 2025.
Metaplanet has established a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, which is owned by Wen Tokyo Inc., its wholly-owned subsidiary, to guarantee all monetary obligations. This announcement led to a significant increase in Metaplanet’s share price by over 9% at the Tokyo Stock Exchange, based on Google Finance data.
Japan eyes crypto
Metaplanet has made another cryptocurrency acquisition, bringing its total holdings of Bitcoin to over 141 units, according to a previous disclosure. This newest purchase reaffirms Metaplanet’s stance on designating Bitcoin as its principal reserve asset.
In May, Metaplanet revealed its intention to purchase Bitcoin as a reaction to persistent economic strains in Japan. The company attributed this decision to elevated government debt and extended durations of negative real returns on investments, leading to a perceived depreciation of the yen.
Approximately 500 investment managers in Japan were surveyed by Nomura and LaserDigital on the topic of investment tendencies and perspectives regarding digital assets, as well as any challenges they encounter when contemplating crypto investments. For further details, please refer to the complete survey findings: [link]
— Nomura (@Nomura) June 24, 2024
In the face of economic instability, Metaplanet isn’t the only one seeing cryptocurrency as a potential refuge. A joint survey by Nomura and Laser Digital reported that approximately 500 Japanese investment managers are contemplating crypto investments. Moreover, nearly half of these respondents expressed willingness to employ stablecoins for transactions and settlements.
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2024-06-24 11:50