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In order to double down on its Bitcoin investment strategy, Metaplanet Inc has announced the establishment of an offshore entity.
Tokyo-based investment firm Metaplanet Inc recently announced the launch of a subsidiary entity in the British Virgin Islands to focus on its Bitcoin bets. With this move, the company aims to ramp up its Bitcoin (BTC) holding management strategy, as revealed in a post on social media platform X.
Metaplanet Inc’s Bitcoin Expansion Move
According to the announcement, the BVI subsidiary was named Metaplanet Capital Ltd in agreement with Metaplanet’s Board of Directors. Metaplanet Capital Ltd will hold Bitcoin directly and conduct businesses related to the leading digital asset. Metaplanet sees a future where Bitcoin will make up a greater part of its balance sheet over the long term.
*Metaplanet establishes wholly-owned BVI subsidiary to enhance strategic $BTC management* pic.twitter.com/plmQ3xp72W
— Metaplanet Inc. (@Metaplanet_JP) June 25, 2024
Scheduled for launch in July, Metaplanet’s CEO Simon Gerovich will act as a representative for the new firm. The company stated that by establishing its new subsidiary, it intends to take advantage of development prospects for its operations abroad.
Additionally, Metaplanet noted that the move permits it to leverage the favorable regulatory environment in the BVI to optimize financial strategies. Moreover, Microplanet sets a precedent for other firms regarding what is possible for Bitcoin’s global expansion.
According to the details, Metaplanet Capital Ltd holds an initial capital of $10,000. Notably, the parent company, Metaplanet Inc is acting as the major shareholder. While the offshore subsidiary holds promise for Metaplanet, the firm anticipates limitations on its FY2023 financials.
It is worth noting that the announcement comes only a day after Metaplanet Inc. said its Board has signed agreements for a 1 billion yen ($6.26 million) BTC purchase. As disclosed in a Coinspeaker report, the capital for the BTC purchase will be raised through an upcoming round of bond issuance. This is going to be the second series of ordinary bonds with guarantees.
At the moment, the company now holds approximately 1.45 billion yen worth of Bitcoin. While this figure is only a far cry from MicroStrategy Inc’s (NASDAQ: MSTR) Bitcoin holdings, it represents a bold move into crypto integration. MicroStrategy’s Bitcoin began almost four years ago in 2020 when the Covid-19 pandemic hit the world.
The company recently bought an additional 11,931 BTC for $786 million, bringing its Bitcoin chest to 226,331 BTC.
Why Traditional Firms Are Purchasing Crypto
There are several factors contributing to the growing interest in Bitcoin adoption by traditional institutions. First, unlike fiat currencies prone to inflation due to central bank policies, Bitcoin has a finite supply capped at 21 million coins. This scarcity makes it attractive as a potential hedge against inflation, similar to gold.
As economic uncertainties loom, institutions are constantly seeking assets that can retain value over time. Bitcoin’s limited supply offers a compelling proposition in this regard.
Furthermore, traditional institutions are seeking ways to diversify their portfolios and mitigate risk. With the launch of spot Bitcoin ETF, more institutions are now seeing Bitcoin as an alternative asset class. This asset class comes with the potential for high returns.
