Crypto News – Metaplanet Strategic Move: Company Adds Bitcoin as a Reserve Asset
Crypto News – A publicly listed investment company called Metaplanet has added Bitcoin to its reserve asset portfolio in response to the Japanese yen’s ongoing depreciation. The Tokyo-based company formally declared on May 13 that it is undergoing a “strategic shift” in its treasury management strategy, emphasizing a Bitcoin-first and Bitcoin-only approach.
This move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen,
the company
The release makes no mention of the amount of Bitcoin that Metaplanet’s treasury presently has or intends to hold. On May 10, Metaplanet said that, on average, it paid about 10.2 million yen, or $65,000, for 117.7 BTC ($7.19 million). The current market value of Metaplanet is approximately $20 million, or 3.5 billion yen.
Change in Strategy Also Boosted Share Prices
A few weeks have passed since Metaplanet originally revealed its new Bitcoin-focused strategy in early April and declared the completion of its $6.5 million first Bitcoin purchase. In addition to gaining a lot of attention on social media, the action sharply raised the price of Metaplanet shares on the Tokyo Stock Exchange. A few hours after the company revealed that it was buying Bitcoin in April, Metaplanet’s shares, which is denoted by the number 3350, surged to 35 JPY ($0.22) from 20 JPY ($0.13).
FAQ
What is Metaplanet?
Early-stage investment company Metaplanet uses its network and industry knowledge to place long-term bets on contrarians.
Why is Japan’s Yen Falling?
The difference in interest rates between local and international banks, combined with an expanding trade imbalance, has been the primary cause of the yen’s decline in value since 2022.
What is a Reserve Asset?
To balance international payments and transactions, reserve assets might be any currency or easily transferable asset, including gold. Policymakers need to have physical control over a reserve asset and ensure its availability.
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