Japanese investment firm Metaplanet Inc., listed in Tokyo, has strengthened its cryptocurrency portfolio with the acquisition of 57.1 Bitcoin (BTC). This move comes after the firm successfully secured a ¥1 billion loan from MMXX Ventures, a shareholder in the company. The acquisition was disclosed on August 13 via a post on X (formerly Twitter).
Metaplanet purchased 57.103 BTC at an average price of $59,242 per Bitcoin. This acquisition is part of the firm’s broader strategy to increase its exposure to cryptocurrencies, particularly Bitcoin, in response to Japan’s ongoing economic challenges. With approximately ¥500 million remaining from the loan, Metaplanet has not yet specified the timing for any future Bitcoin purchases.
The ¥1 billion loan, obtained on August 8, carries a favorable annual interest rate of 0.1% and is set to mature in six months. This financial backing is crucial for Metaplanet’s ongoing efforts to expand its cryptocurrency holdings.
In addition to the loan, Metaplanet has plans to raise $70 million through stock rights offerings. The firm has earmarked over 80% of these funds for further Bitcoin investments. This move aligns with Metaplanet’s long-term growth strategy, which includes leveraging Bitcoin’s potential for substantial appreciation. Some analysts predict that Bitcoin’s value could reach $1 million within the next decade.
Metaplanet’s decision to increase its Bitcoin holdings is a strategic response to Japan’s economic challenges, including high government debt, prolonged periods of negative real interest rates, and a weak yen. The firm first announced its intention to enhance its Bitcoin portfolio in May, citing these economic pressures as a driving force behind its strategy.
By investing heavily in Bitcoin, Metaplanet aims to hedge against these economic issues and capitalize on Bitcoin’s potential as a long-term store of value. This move reflects a growing trend among institutions in Japan and globally, where cryptocurrency is increasingly seen as a viable hedge against economic instability.
