Japan’s Metaplanet Expands Bitcoin Holdings with $6.94 Million Investment

Japan’s Metaplanet, originally a budget hotel operator turned investment firm, has significantly increased its Bitcoin holdings with a recent investment. As of October 1, Metaplanet disclosed the purchase of an additional 107.913 Bitcoin (BTC) for a total of ¥1 billion ($6.94 million), marking one of its largest single acquisitions. This latest purchase brings Metaplanet’s total Bitcoin holdings to 506.745 BTC, valued at approximately $32.45 million.

Strategic Bitcoin Accumulation

Since announcing Bitcoin as a reserve asset, Metaplanet has invested a total of ¥4.75 billion, acquiring Bitcoin at an average price of ¥9,373,557 per coin (around $65,000). The Tokyo-based company’s decision to bolster its Bitcoin reserves forms part of a broader strategy to hedge against Japan’s economic challenges, including the yen’s depreciation.

Since May 2024, Metaplanet has been steadily diversifying its holdings into Bitcoin, following the example set by the U.S. firm MicroStrategy. This approach has earned Metaplanet the moniker “Asia’s MicroStrategy” among market analysts.

Recent Investments and Future Plans

The recent Bitcoin purchase follows a $2 million investment last month, where Metaplanet acquired 38.4 BTC. In August, the company secured a ¥1 billion loan from stakeholder MMXX Ventures and used ¥500 million of that to buy 57.103 BTC.

Additionally, Metaplanet has announced plans to raise $70 million through stock rights offerings, with over 80% of the funds earmarked for its Bitcoin acquisition strategy. The firm has partnered with SBI VC Trade, a subsidiary of Japan’s financial giant SBI Group, to ensure compliance, enhance tax efficiency, and offer corporate custody services and financing options using Bitcoin as collateral.

Japan’s Growing Interest in Cryptocurrency

Metaplanet’s Bitcoin strategy is in line with the growing interest from Japanese investment managers. A recent survey indicated a rising curiosity among these managers to explore crypto investments. Meanwhile, Japan’s regulators are contemplating easing crypto regulations to foster more investment in the sector. The Financial Services Agency is reviewing current rules, which could result in reduced taxes and allow domestic funds to invest in cryptocurrencies.

Earlier this year, the Ministry of Economy, Trade and Industry approved local investment limited partnerships to invest in cryptocurrencies, aligning with former Prime Minister Fumio Kishida’s “new capitalism” policy.

“Metaplanet’s proactive approach in expanding its Bitcoin holdings highlights the increasing acceptance and integration of cryptocurrencies in traditional investment portfolios.”

For more updates and news on the cryptocurrency market, visit Global Crypto News.

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