Can BTC Save the Yen? Metaplanet Spends 200 Million for More Bitcoin
The post Can BTC Save the Yen? Metaplanet Spends 200 Million for More Bitcoin appeared first on Coinpedia Fintech News
Amid Japan’s uncertain financial outlook, publicly-traded company Metaplanet is making a bold move. They’ve invested a staggering 1 billion yen (approximately $6.26 million) in Bitcoin, swapping low-interest bonds for the world’s most famous cryptocurrency. This investment was funded by the proceeds from its second issuance of ordinary bonds, which carry an annual interest rate of 0.5% and mature in June 2025. With an additional Bitcoin purchase of ¥200 million, the firm now holds a total of 161.2677 Bitcoins in its account.
Savvy strategy or a risky gamble? Read on and decide for yourself.
Why is Japan Turning to Bitcoin?
Metaplanet’s move is part of a broader strategy to manage risks associated with Japan’s high debt and yen volatility. In 2023, Japan’s net debt-to-GDP ratio was the highest among G7 countries, at around 159%.
A Calculated Investment
Continuing their buying spree, Japan’s Metaplanet has yet again acquired approximately 20.20 more Bitcoin for ¥200 million, averaging ¥9,903,441 per BTC. As of July 1, Metaplanet’s Bitcoin holdings total around 161.27 BTC, purchased for ¥1.65 billion at an average price of ¥10,231,438 per $BTC.
This marks the Fourth substantial Bitcoin purchase by the company in just seven weeks, and its share price has increased nearly fivefold since first announcing its Bitcoin strategy in April, proving the effectiveness of its approach.
Following in MicroStrategy’s Footsteps
Much like MicroStrategy, Metaplanet is holding Bitcoin as a reserve asset to reduce its exposure to the yen and protect itself from Japan’s debt issues. The company also plans to raise an additional ¥935 million (approximately €5 million) through “Stock Acquisition Rights” to buy more Bitcoin, following the trend of U.S. companies investing in cryptocurrencies.
Crypto Market Impact
The increased adoption of Bitcoin by institutional investors has led to a notable decrease in BTC available on centralized exchanges. June was catastrophic for the entire crypto market, with Bitcoin falling 17%. The global crypto market’s capitalization dropped 10.27% from $2.53 trillion at the start of the month to $2.27 trillion by the end. However, as July began, Bitcoin started to show signs of recovery, surging by 4% within a day and currently trading at $63,360.
Despite this volatile market, large investors (whales) continue to accumulate Bitcoin, which often leads to price rebounds.
Growing Corporate Interest
Metaplanet’s move is not isolated; Sony’s acquisition of Amber Japan highlights the growing corporate interest in crypto within Japan’s tech sector. This trend suggests that big investors are seeking valuable assets amid the current global downturn.
Other companies are beginning to follow Metaplanet’s crypto strategy. Only time will tell if this approach will benefit Japan’s economy or pose a threat to the yen.
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