Metaplanet, a Japanese company listed on the Tokyo Stock Exchange, announced a strategic shift in its financial management strategy, adopting Bitcoin (BTC) as a strategic reserve asset to hedge against Japan’s debt burden and the resulting fluctuations in the yen.
Metaplanet said in a press release issued on Monday:
"The move is a direct response to ongoing economic pressures in Japan, particularly high government debt levels, a prolonged period of negative real interest rates and the consequent weakening of the yen."
Metaplanet is an early-stage investment firm that is no longer involved in the Web3 business and is currently focused solely on Bitcoin and commercial real estate. According to BitcoinTreasuries.NET, Metaplanet has bought 117.7 BTC (approximately $7.19 million) since April, a move similar to the strategy adopted by US-listed MicroStrategy, which has acquired billions of dollars worth of Bitcoin.
*Strategic Treasury Transformation and Bitcoin Adoption by Metaplanet* pic.twitter.com/Uz5RxkBV2D
— Metaplanet Inc. (@Metaplanet_JP) May 13, 2024
Metaplanet said that as the yen continues to weaken, Bitcoin provides a non-sovereign store of value that has and may continue to appreciate relative to traditional fiat currencies. The Bank of Japan's strategy of intervening in foreign exchange markets while maintaining low interest rates represents an "unsustainable monetary paradox," the firm added.
Metaplanet plans to hold Bitcoin for the long term to ensure it minimizes realized taxable gains. The company also intends to use its existing cash reserves and excess cash flow from its holdings to conduct strategic currency arbitrage and acquire more Bitcoin by issuing long-term yen liabilities when the opportunity arises.
This article Japanese listed company Metaplanet adopts Bitcoin as a reserve asset to hedge Japan’s debt burden and yen fluctuations first appeared on Zombit.