Strategic Treasury Reserve Asset
Japanese investment and consulting services company Metaplanet has made a strategic decision to adopt Bitcoin (BTC) as its treasury reserve asset. This strategic move by Metaplanet is a response to Japan’s high debt burden and the volatility of its national currency (yen). In a press release on Monday, the company emphasized its commitment to a “Bitcoin-first, Bitcoin-only approach,” focusing on accumulating Bitcoin through financial options like long-dated yen liabilities and periodic share issuances.
- Metaplanet revealed plans to invest ¥200 Million ($1.25 million) in acquiring Bitcoin, with recent purchases totaling 19.87 BTC on May 10. To date, the company has acquired 117.7 BTC ($7.19 million) since April, following a similar strategy to U.S.-listed MicroStrategy (MSTR).
“Metaplanet has pivoted its treasury strategy to Bitcoin, focusing on a number of complementary strategies designed to be accretive on a per-share basis in Bitcoin terms,” the company stated.
National Currency Challenges
Japan’s fiscal crisis has been a significant factor in the recent devaluation of the yen. The country’s high government debt levels, coupled with prolonged periods of negative real interest rates, have weakened the yen against major currencies. According to the International Monetary Fund (IMF), Japan’s gross debt-to-GDP ratio is over 254%, significantly higher than that of the US at 123%.
The Bank of Japan (BOJ) implemented a negative interest rate policy in 2016, leading to a further devaluation of the yen. Despite recent adjustments to policy rates, the yen remains weak due to high national debt and low interest rates. Over the past decade, the yen has depreciated by 50% against the dollar.
“Metaplanet views bitcoin as fundamentally superior to any and all other forms of political currency, traditional stores of value and investment, and all other crypto-assets/securities,” the company explained.
