Metaplanet, a renowned investment firm based in Japan, has recently bolstered its Bitcoin holdings through a significant purchase. This move not only showcases the firm’s growing confidence in Bitcoin as a valuable asset but also reflects the broader trend of institutional investors venturing into the cryptocurrency market.
Often referred to as “Asia’s MicroStrategy,” Metaplanet disclosed its mammoth acquisition of Bitcoin worth ¥1 billion ($6.25 million) on Monday. The funds used for this purchase were raised through a recent bond issuance. By incorporating Bitcoin into its investment strategy, Metaplanet aims to diversify its portfolio and protect against the unpredictability of the economy.
The decision to purchase a substantial amount of Bitcoin had previously received approval from Metaplanet’s board of directors. Details about the plan to acquire Bitcoin valued at 1 billion yen, approximately $6.25 million, were unveiled earlier on Monday.
According to the company statement, the recent bond issue provided the necessary funds for this acquisition. Metaplanet intends to hold onto its Bitcoin holdings for the foreseeable future. However, if the cryptocurrency is utilized for operational expenses or other purposes, its value will be recorded as current assets.
This is not the first time that Metaplanet has engaged with Bitcoin. In the past two months, the company has made three separate Bitcoin purchases. With its most recent acquisition of 23.25 BTC, valued at around $1.59 million, Metaplanet’s total Bitcoin holdings have now reached 141.07 BTC. Following the purchase on June 24, the company’s Bitcoin holdings will exceed 240 BTC, equivalent to approximately $15 million at the current market price.
Metaplanet’s decision to invest in Bitcoin stems from concerns over the depreciating yen and Japan’s mounting debt. The Japanese government faces a substantial debt burden, and the economy has not experienced any significant benefits from zero interest rates.
In other crypto news today, there has been a noticeable decline in major cryptocurrencies. 