Metaplanet bolsters Bitcoin reserves with another purchase of 21.8 BTC

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As a seasoned researcher with a background in financial markets and a deep interest in emerging trends, I find Metaplanet’s recent Bitcoin purchases intriguing. With Japan’s economic challenges, including high government debt, prolonged negative real interest rates, and a weak yen, it comes as no surprise that Japanese companies are seeking alternative investments to diversify their treasury reserves.

Japanese public company Metaplanet keeps buying Bitcoin for its “strategic treasury reserve asset.”

Metaplanet Inc., a Japanese investment firm situated in Tokyo, has invested an extra $1.26 million in Bitcoin (BTC), bringing their total holdings to over 200 BTCs. This purchase was made as the market value of Bitcoin surpassed $63,000, making it the largest cryptocurrency by capitalization.

In a regulatory announcement, Metaplanet revealed the procurement of 21.877 Bitcoins for approximately ¥200 million yen or equivalent to around $1.259 million, with an average price of $57,623 per Bitcoin. This recent buy-up has increased the company’s Bitcoin holdings in its “strategic treasury reserve” to more than 225.6 Bitcoins.

*Metaplanet purchases additional 21.88 $BTC* — Metaplanet Inc. (@Metaplanet_JP) July 16, 2024

Last week, Metaplanet made another Bitcoin purchase worth around $2.4 million, following their recent investment of over $6.2 million in Bitcoin through the issuance of second series bonds. These EVO FUND bonds, which have an annual interest rate of 0.5% and mature on June 25, 2025, were used for this purchase.

Metaplanet started buying large amounts of Bitcoin in late June, but they had owned some before this time. In May, Metaplanet declared its plan to accumulate more Bitcoin. They did this for several reasons related to Japan’s economic situation, such as high national debt, persistently low real interest rates, and a resulting weak yen.

According to a recent report by crypto.news, I, as an analyst, have come across some intriguing findings from a survey conducted by Nomura and Laser Digital. The survey involved over 500 investment managers in Japan, and the results indicated that more than half of them are currently considering investing in cryptocurrencies. Furthermore, approximately half of these respondents expressed openness towards utilizing stablecoins for settling transactions and carrying out daily financial activities.

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2024-07-16 09:33