Metaplanet, a publicly traded investment firm, has recently made a bold move by adding Bitcoin to its reserve assets. This decision comes as a response to the ongoing decline of the Japanese yen. In an official announcement on May 13, the Tokyo-based company revealed that it is undergoing a “strategic shift” in its treasury management strategy, opting for a Bitcoin-first and Bitcoin-only approach.
Metaplanet explained that this move is a direct result of the economic pressures faced in Japan, including high government debt levels, prolonged periods of negative real interest rates, and the subsequent weakening of the yen. However, the announcement did not disclose the exact amount of Bitcoin currently held or planned to be held in Metaplanet’s treasury.
On May 10, Metaplanet disclosed that it had acquired a total of 117.7 BTC (equivalent to $7.19 million) at an average price of around 10.2 million yen, or $65,000. The company’s market value is currently estimated to be around 3.5 billion yen, or roughly $20 million.
This recent adoption of Bitcoin by Metaplanet follows their earlier announcement in early April, where they unveiled their new Bitcoin-focused strategy and announced their first Bitcoin purchase worth $6.5 million. This announcement gained significant attention on social media and led to a sharp increase in the price of Metaplanet shares on the Tokyo Stock Exchange.
Prior to this strategic shift, Metaplanet primarily operated in the traditional investment sector. Established in 1999, the company initially focused on hotel business, investment services, and investor relations consultancy.
In another development, Metaplanet recently appointed renowned market researcher Dylan LeClair as the director of Bitcoin strategy. Metaplanet CEO Simon Gerovich expressed his enthusiasm for the future, stating in an X post on May 9 that this is just the beginning of their Bitcoin acquisitions.
The Japanese yen has reportedly been the weakest performer among major currencies against the United States dollar in 2024, reaching record lows in April not seen since the 1990s. Local sources attribute the yen’s decline over the past three years to the interest rate gap between domestic and foreign rates, as well as a growing trade deficit.
Overall, Metaplanet’s decision to embrace Bitcoin as a reserve asset showcases their commitment to adapt to the changing economic landscape and position themselves strategically in the market.