This Japanese public company has added Bitcoin as a reserve asset

Bitcoin has continued to gain mainstream adoption, with major corporations and the industry’s top dogs incorporating the digital asset into their long-term financial strategies.

Metaplanet, a Japanese investment and consulting firm listed on the Tokyo Stock Exchange, is the latest company to make such a remarkable move.

Metaplanet makes a Bitcoin reserve asset

According to an official statement, Metaplanet has adopted Bitcoin in its treasury management strategy, making the cryptocurrency its reserve asset. The company will prioritize a Bitcoin-first, Bitcoin-only approach, using long-term Japanese yen (JPY) liabilities and periodic equity issuances as financial options to continually buy more BTC.

“Metaplanet believes that bitcoin is fundamentally superior to any other form of political currency, traditional stores of value and investment, and all other cryptoassets/securities. Bitcoin is an absolutely scarce digital synthetic monetary commodity with no central issue,” he said the company

Metaplanet’s announcement comes about a month after the company invested JPY 1 billion ($6.5 million) in BTC, marking its transition into the leading crypto asset.

The investment and consulting firm said the move is a response to economic pressures on Japan, the weak yen, long periods of negative interest rates and high levels of public debt. Metaplanet’s new approach will increase BTC per share, enhancing long-term shareholder value.

Japanese yen struggles

Japan’s challenging economic landscape saw the yen fall to 34-year lows a few weeks ago, marking a 50% depreciation against the USD over the past decade. Metaplanet explained that the country’s unsustainable financial trajectory suggests an increasing rate of currency devaluation in the future.

Additionally, Metaplanet revealed that Japan’s debt-to-gross domestic product ratio is 261%, the highest in the developed world. The Bank of Japan implemented a negative interest rate policy in 2016 and artificially suppressed borrowing costs by printing the yen to buy government bonds.

“This weakness is evident to all market participants and is only temporarily masked by sporadic interventions by the BoJ in both the government bond market and the foreign exchange market,” the company added.

Metaplanet’s Bitcoin strategy would strengthen its balance sheet in the face of further yen devaluation and position the company as a BTC-focused investment vehicle.

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