Cryptocurrencies

Publicly traded investment firm Metaplanet has added Bitcoin (BTC) as a reserve asset

Publicly traded investment firm Metaplanet has added Bitcoin (BTC) as a reserve asset in response to the continued decline in the value of the Japanese yen.

Metaplanet is making a “strategic shift” in its treasury management strategy, prioritizing a Bitcoin-first and Bitcoin-only approach, the Tokyo-based company officially announced on May 13.

“This move is a direct response to ongoing economic pressures in Japan, particularly high levels of government debt, prolonged periods of negative real interest rates, and consequently a weak yen,” the company stated.

The announcement does not specify how much Bitcoin is currently or planned to be held in the Metaplanet vault. On May 10, Metaplanet revealed that it had purchased a total of 117.7 bitcoins ($7.19 million) at an average price of about 10.2 million yen, or $65,000. Metaplanet’s market cap is about 3.5 billion yen, or roughly $20 million.

Source: Meta Planet

Metaplanet’s adoption of Bitcoin comes just weeks after the company initially unveiled its new Bitcoin-focused strategy in early April, announcing the completion of its first Bitcoin purchase worth $6.5 million.

The move generated significant interest on social media and caused a sharp increase in Metaplanet’s stock prices on the Tokyo Stock Exchange. Metaplanet stock, listed under the digital symbol 3350, rose above JPY35 ($0.22) from JPY20 ($0.13) hours after the company announced its Bitcoin purchase in April.

Publicly Traded Investment Firm Metaplanet Has Added Bitcoin (Btc) As A Reserve Asset
Source: CNBC

Before its strategic shift to Bitcoin, Metaplanet operated primarily in the traditional investment landscape. Founded in 1999, Metaplanet originally operated a hotel business, investment services and investor relations consulting.

Related: Jack Dorsey’s block is “DCA” in Bitcoin every month

This news comes just days after Metaplanet appointed prominent market researcher Dylan LeClair as Director of Bitcoin Strategy.

“This is just the beginning,” Metaplanet CEO Simon Jerovich wrote in an X post about the company purchasing more bitcoin on May 9.

The Japanese yen was reportedly the worst performer in 2024 among the major currencies against the US dollar, falling to record levels in April last seen in the 1990s. According to local sources, the depreciation of the yen over the past three years came mainly from the gap between domestic and foreign interest rates and the growing trade deficit.

magazine: SEC, Ripple case comes to a close, Grayscale withdraws ETF filing, and more: Hodler’s Digest, May 5-11

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