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Japanese Public Firm Metaplanet acquires $2.5 million Worth of Bitcoin Amid Crypto Meltdown
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Japanese Public Firm Metaplanet acquires $2.5 million Worth of Bitcoin Amid Crypto Meltdown

2024-07-08 by Ndaman Olayinka 3 minutes read
Japanese Public Firm Metaplanet acquires $2.5 million Worth of Bitcoin Amid Crypto Meltdown

Japanese investment firm Metaplanet Inc., listed on the Tokyo Stock Exchange, has acquired 42,466 Bitcoin (BTC) for approximately $2.5 million.

Metaplanet, listed on the Tokyo Stock Exchange, acquired an extra 42,466 Bitcoins and at the current market price of Bitcoin, the 400 million yen purchase is almost equivalent to $2.5 million, according to a statement released on Monday on X during Asian hours.

Following the most recent acquisition, the company's total Bitcoin holdings increased to 203,734 BTC, valued at 2.05 billion yen, or $15.56 million, making it the largest corporate Bitcoin holder in Japan. 

The Japanese economic crisis, which resulted in a sharp decline in the value of the yen against the US dollar, prompted the company to adopt Bitcoin as a tactical treasury reserve asset. Metaplanet has initiated a determined push to include the world's largest digital asset on its balance sheet, according to a report. 

In April 2024, Metaplanet made a significant move into the Bitcoin space by acquiring its first batch of Bitcoin for $6.5 million and utilizing it as a treasury asset. Metaplanet stated that well-known industry figures, including Jack Liu, a founding member of Ordiswap, and Mark Yusko of Morgan Creek Capital, as well as organizations like Sora Ventures and UTXO Management, supported the company's decision to enter the Bitcoin space. 

The company was dubbed "Asia's MicroStrategy" due to the similarities between Metaplanet's aggressive Bitcoin purchases and MicroStrategy's 2020 market debut. 

In 2020, MicroStrategy began purchasing Bitcoin as a hedge against inflation and as a substitute for cash. As of June 24, the company had amassed at least 226,331 Bitcoin, at a cost of $7.538 billion, or $35,158 per BTC. As of this writing, MicroStrategy is the largest corporate owner of the digital asset, with holdings valued at $12.53 billion. 

Metaplanet's acquisition of more Bitcoin not only solidifies its place in the cryptocurrency market but also illustrates institutional investors' growing inclination toward digital assets, according to industry analysts. These kinds of investments are thought to be a hedge against devaluation and inflation, especially in light of recent global economic uncertainties.

Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.