Bitcoin continues to make inroads into the mainstream as major corporations embrace the digital asset in their long-term financial plans. Metaplanet, a Japanese investment and consulting firm listed on the Tokyo Stock Exchange, is the latest company to make a remarkable move in this direction.
According to an official announcement, Metaplanet has adopted Bitcoin as its reserve asset within its treasury management strategy. The company will prioritize a Bitcoin-first, Bitcoin-only approach, using long-term Japanese yen liabilities and periodic share issuances to acquire more BTC continually.
“Metaplanet views Bitcoin as fundamentally superior to any other form of fiat currency, traditional store of value, investment, and all other crypto-assets or securities. BTC is a scarce digital synthetic monetary commodity with no central issuer,” the company stated.
Furthermore, Metaplanet’s announcement comes about a month after the firm invested 1 billion Japanese yen (around $6.5 million) into Bitcoin. This investment marks its transition to the leading cryptocurrency.
The investment and consulting firm cited Japan’s economic pressures. They mentioned the weak yen, prolonged negative interest rates, and high government debt levels as reasons for the move. Metaplanet’s new Bitcoin-focused approach will increase its BTC holdings per share, enhancing long-term shareholder value.
Metaplanet’s Bitcoin Defense: Shielding Against Yen Devaluation
Japan’s challenging economic landscape saw the yen fall to 34-year lows a few weeks ago, depreciating by 50% against the US dollar over the past decade. Metaplanet explained that Japan’s unsustainable financial trajectory suggests an increasing rate of monetary devaluation in the future.
Moreover, Metaplanet revealed that Japan’s debt-to-gross domestic product ratio is 261%, the highest in the developed world. The Bank of Japan implemented negative interest rates in 2016 and artificially suppressed borrowing costs by printing yen to purchase government bonds.
“This weakness is evident to all market participants and is only temporarily masked by sporadic interventions from the Bank of Japan in both the government bond and foreign exchange markets,” the company added.
Furthermore, Metaplanet’s Bitcoin strategy aims to fortify its balance sheet against further yen devaluation. It also seeks to position the company as a Bitcoin-focused investment vehicle.
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