Metaplanet, a Japanese company that started out as a hotel operator and is now publicly traded, announced that it has purchased another ¥400 million (US$2.5 million) worth of bitcoin. This continues the company’s strategy of adopting bitcoin as a treasury reserve asset.
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BREAKING NEWS: Japanese public company Metaplanet buys another ¥400 million of shares twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1810230691231154481?ref_src=twsrc%5Etfw”>July 8, 2024
Despite the bitcoin market crash, Metaplanet revealed that it acquired 42,466 more bitcoin on July 8. This brings its total holdings to around 203 bitcoin purchased for ¥2.05 billion ($12.7 million), an average price of ¥10 million ($62,000) per coin.
Metaplanet is mimicking the bitcoin accumulation strategy of MicroStrategy, the American software company. Since 2020, MicroStrategy has accumulated over 200,000 bitcoin, now worth $15 billion, making it the largest corporate holder.
Its share price has often mirrored bitcoin's fluctuations, and investors use it as an indicator of bitcoin exposure.
The Japanese firm said that buying bitcoin helps minimize exposure to a weakening yen amid prolonged low interest rates. This approach also gives domestic investors access to bitcoin through a public company with preferential tax treatment.
The yen has plummeted sharply in 2022, reaching lows against the dollar and euro not seen in decades. The Bank of Japan has maintained a loose monetary policy in contrast to the global adjustment.
While the amounts remain small so far, their continued purchases demonstrate commitment even amid market turmoil. As “Asia’s MicroStrategy,” Metaplanet is positioning itself to ride future waves of bitcoin adoption.
Disclaimer: bitcoin Magazine is wholly owned by btc Inc., which operates UTXO Managementa regulated capital allocator focused on the digital asset industry. UTXO invests in a variety of bitcoin businesses and holds significant stakes in digital assets.
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