Japanese investment firm Metaplanet has announced the acquisition of over 20.2 Bitcoin as part of its ongoing strategy to bolster its BTC holdings.
In a statement released on its website, the Tokyo-based firm revealed that it had invested 200 million yen (equivalent to $1.2 million) to acquire the additional BTC, bringing its total holdings to 161.3 BTC.
Shortly after the close of trading on the Tokyo Stock Exchange, the company shared news of the purchase on its social media account, X.
*Metaplanet purchases additional 20.20 $BTC* pic.twitter.com/4tCRWAc2an
— Metaplanet Inc. (@Metaplanet_JP) July 1, 2024
Metaplanet’s $6M Bitcoin Investment Strategy
Just last week, Metaplanet outlined its intention to expand its bitcoin holdings with a $6 million investment.
The money for its purchase will come from a recent bond sale.
Metaplanet, known as “Asia’s MicroStrategy,” said its Bitcoin holdings designated for long-term holding will be recorded at their acquisition cost. These are exempt from taxation based on end-of-term market value assessments.
Further, it added that other Bitcoin holdings will be evaluated at market prices each quarter. Any gains or losses from these evaluations will be recorded under non-operating income or expenses.
Back in April, Metaplanet revealed its decision to incorporate Bitcoin into its treasury assets due to several factors.
Firstly, it aims to minimize its exposure to the Japanese yen, which has been significantly impacted by Japan’s low-interest-rate environment.
The company has also expressed concern about the yen’s vulnerability and highlighted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation.
It is worth noting that the decision to add Bitcoin to its reserve assets has positively impacted Metaplanet’s shares so far.
Metaplanet’s approach to accumulating Bitcoin echoes the strategy employed by MicroStrategy, a software developer based in Tysons Corner, Virginia.
MicroStrategy has been consistently purchasing BTC for nearly four years and currently holds over 226,000 BTC, which represents more than 1% of the total supply of Bitcoin that will ever be issued.
Corporate Treasurers Explore Bitcoin
The ongoing macroeconomic uncertainties, characterized by increasing inflationary pressures and geopolitical tensions, have prompted corporate treasurers to explore the inclusion of Bitcoin (BTC) as a reserve asset, according to digital asset prime services platform Abra.
As reported, the company has just launched a service designed for corporates seeking to hold cryptocurrencies as reserve assets on their balance sheets.
It said that there is a trend of non-crypto-native businesses expressing interest in utilizing Bitcoin as a treasury reserve asset.
“We are increasingly seeing clients that are business owners and CEOs of small to medium-sized businesses (SMBs), in particular real estate companies, with interest in buying BTC for their treasury or borrowing against BTC to finance business needs or real estate projects,” Marissa Kim, the Head of Asset Management at Abra Capital Management, said.
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