6 months ago
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Metaplanet says it is looking to use a wide range of capital market instruments to grow its Bitcoin reserves.
The persistent economic challenges of Japan may have caused Tokyo-listed crypto investment and consulting firm Metaplanet Inc. to make a strategic maneuver. This follows after the firm announced in a Monday release that it will be adopting Bitcoin as its primary treasury reserve asset. According to the announcement, the move is a direct response to the growing economic concerns in the region.
Metaplanet to Use Bitcoin Reserves to Combat Yen Slump
The firm noted that there is no denying the fact that a significant shift is currently ongoing in the traditional financial landscape of Japan. This has not only caused the Japanese yen to depreciate in value but has also taken the country’s debt to new heights. Metaplanet’s statement reads:
“The 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.”
By deciding to use Bitcoin as a reserve asset, Metaplanet joins a growing list of institutions seeking alternatives to traditional fiat currencies in the middle of economic woes. Although there seems to be a general economic situation going on around the world, Japan’s case might be a peculiar one.
According to the International Monetary Fund (IMF), the country currently grapples with a 254.6% debt-to-GDP ratio — the highest government among developed nations. Additionally, the yen has continued to plummet, even to the point that it saw its lowest level in 34 years in April. That is despite a March decision by the government to bolster interest rates as a Reuters publication stated at the time.
Explaining the rationale behind the firm’s decision, Metaplanet pointed to Bitcoin’s attributes as a “non-sovereign store of value.” It compared the asset to fiat currencies, drawing reference to Bitcoin’s finite supply that ensures its scarcity and appreciation unlike what is obtainable in the traditional financial world.
Metaplanet noted that there will only ever be 21 million Bitcoins. Therefore, the scarcity, alongside its growing mainstream adoption and recognition, positions it as an unrivaled long-term investment and store of wealth.
Unveils Investment Strategy
Meanwhile, Metaplanet has shared how it intends to expand its Bitcoin reserves in a diversified manner. The firm says it is looking to use a wide range of capital market instruments to grow its Bitcoin reserves.
As of May 10, data from Bitcointreasuries.net shows that the company currently holds 117.7 BTC, which translates to roughly $7.2 million.
