NEWSLETTER
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Japanese company Metaplanet announced that it will purchase 1 billion yen (about $6.5 million) worth of bitcoin as part of its corporate treasury strategy, a move that mirrors MicroStrategy's prominent bitcoin accumulation.
Metaplanet, a publicly traded company listed on the Tokyo Stock Exchange, a diversified company, revealed the bitcoin purchase initiative on x.com/Metaplanet_JP/status/1777243921867014574″>x. The company cited hedging risks from currency devaluation and inflation as motivations.
The announcement said the purchase is an “initial commitment” and part of a broader acceptance of bitcoin's potential. Partners such as legendary hedge fund manager Mark Yusko, UTXO Management and Sora Ventures are backing him.
By adopting a bitcoin treasury reserve similar to MicroStrategy, Metaplanet aims to benefit from the advantages of bitcoin while mitigating the risks. MicroStrategy has pioneered the corporate bitcoin treasury strategy, purchasing over $6 billion worth of btc since 2020.
Metaplanet's stock price soared 89.47% on Tuesday following the bitcoin announcement.
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JUST IN: Japanese public company Metaplanet shares rose almost 90% after they announced the twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw”>$btc
He twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin Effect pic.twitter.com/ixbmo2ZlPJ
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1777617954458263943?ref_src=twsrc%5Etfw”>April 9, 2024
Jason Fang of Sora Ventures called Metaplanet “x.com/JasonSoraVC/status/1777300574939058202″>Asia's first MicroStrategy” for replicating his approach in bitcoin.
The move also provides Japanese investors with indirect exposure to bitcoin without high taxes on unrealized gains, which can reach 55% in Japan. Metaplanet's bitcoin funds will be held in a tax-advantaged structure that only the company can access.
By purchasing bitcoin, Metaplanet joins the growing list of public companies using bitcoin to maximize shareholder value. As MicroStrategy demonstrates the effectiveness of the model, further institutional adoption is likely.
For Metaplanet, bitcoin offers opportunities beyond investment gains, such as accelerating its bitcoin initiatives.
The announcement is a bullish sign of bitcoin's traction in Asia. Metaplanet offers investors a regulated path to gain exposure to btc. If successful, more public companies in the region are expected to follow its model.
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