Japanese investment firm Metaplanet boosts its Bitcoin investments
Japanese investment firm Metaplanet has purchased an additional 57,273 Bitcoins worth $3.4 million.
As of August 20, the firm’s total Bitcoin holdings now stand at nearly $22 million.
Earlier this month, the firm took out a loan at a low annual interest rate of 0.1% to purchase $6.8 million worth of Bitcoin.
Metaplanet made a similar move to MicroStrategy in May, when it adopted Bitcoin as its primary reserve asset.
The move toward Bitcoin was intended to protect the publicly traded firm from the deterioration of the Japanese yen.
The Japanese currency had fallen sharply against the US dollar earlier this year, as a result of the US Federal Reserve’s policy of not cutting interest rates.
In April, the yen hit its lowest level against the dollar since the early 1990s, a period when Japan’s real estate bubble burst.
Today, the rapid decline in the yen’s value is being attributed to an unstable macroeconomic environment.
MicroStrategy began allocating a portion of its cash reserves to Bitcoin as a hedge against inflation, and has continued to boost its holdings to become the world’s largest Bitcoin holder, with a total of $13.8 billion.
