Metaplanet Adopts Bitcoin as Reserve Asset Amid Japanese Yen's Decline
Summary:
Metaplanet, a publicly-listed investment firm based in Tokyo, has adopted Bitcoin (BTC) as a reserve asset as a response to the ongoing weakening of the Japanese yen. This "strategic shift" to a Bitcoin-focused treasury management strategy comes amidst sustained national economic pressures. In related news, renowned market researcher Dylan LeClair has been appointed as the director of Bitcoin strategy in Metaplanet, while the company's shift to Bitcoin has significantly increased its share price on the Tokyo Stock Exchange.
Metaplanet, a publicly-listed investment company, has adopted Bitcoin (BTC) as a reserve asset amid the persistent weakening of the Japanese yen. The Tokyo-headquartered firm unveiled this "strategic shift" in its treasury management on May 13, choosing to adopt a predominantly Bitcoin-focused approach. This adjustment comes due to ongoing economic difficulties in Japan, such as the nation's high sovereign debt, extended periods of negative real interest rates, and consequently, the unstable yen, according to the firm. Though the quantity of Bitcoin currently or planned to be kept in Metaplanet's treasury was not disclosed in the announcement, the firm did reveal on May 10 that it had purchased 117.7 BTC ($7.19 million) at an average price of about 10.2 million yen or $65,000. Metaplanet's market cap is roughly 3.5 billion yen, or approximately $20 million.
This move follows on the heels of Metaplanet's initial announcement of its Bitcoin-centric strategy in early April, when it confirmed the acquisition of Bitcoin worth $6.5 million. This move sparked considerable interest on social media and resulted in a steep hike in the price of Metaplanet's shares on the Tokyo Stock Exchange. After Metaplanet revealed its Bitcoin purchase in April, the firm's stock, identified by the numeric symbol 3350, surged from 20 JPY ($0.13) to over 35 JPY ($0.22).
Before this transition to Bitcoin, the traditional investment scene was Metaplanet's primary operation. Since its foundation in 1999, Metaplanet initially offered a range of services from running a hotel business to providing investment assistance and consultancy for investor relations.
In recent news, just a few days prior, Metaplanet appointed Dylan LeClair, a renowned market researcher, as director of Bitcoin strategy. In a post on May 9, about the company's additional Bitcoin acquisition, Metaplanet CEO Simon Gerovich stated, "This is just the beginning."
On a negative note, the Japanese yen has reportedly been the weakest performer of 2024, amongst significant global currencies, against the U.S. dollar, reaching record lows in April last observed in the 1990s. As per local insights, the yen's decline over the past three years is due mainly to the difference between domestic and foreign interest rates, coupled with an increasing trade deficit.
Published At
5/13/2024 2:27:36 PM
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