As the Japanese Yen faces volatility and the government deals with fiscal crises, Metaplanet has adopted bitcoin as its primary reserve asset.
Metaplanet, a Tokyo-traded public corporation, has demonstrated strategic foresight by officially turning to Bitcoin as its major reserve asset. In the face of Japan’s major economic and financial crisis, marked by the highly volatile Japanese Yen, the company is proactively acquiring more bitcoins, confident that it will play a crucial role in stabilizing its economy.
Metaplanet Announces Switch to Bitcoin
In a meticulously planned and executed strategic move, Metaplanet announced a shift in its treasury management plan on Monday, adopting bitcoin as its primary reserve asset. The report stated, “Recognizing both the challenges and opportunities within the current global financial landscape, Metaplanet has adopted bitcoin as its strategic treasury reserve asset.”
Notably, the Japanese government debt level has increased significantly, affecting interest rates and weakening the Yen. Therefore, the release explains that Metaplanet sees this move as a “direct response to sustained economic pressures in Japan.”
Japan’s debt-to-GDP (Gross Domestic Product) ratio, used to review a country’s ability to repay debts, has jumped above the average 250% to 261% as the country’s debts rise above those of many developed countries. The Japanese Yen has depreciated over 50% within the last decade.
Believing in bitcoin as a safeguard against financial and economic crisis, Metaplanet has adopted a Bitcoin-first, Bitcoin-only strategy for the company instead of retaining the weakening Yen. It sees bitcoin as a scarce digital commodity “superior to any and all other forms of political currency, traditional stores of value and investment.”
The release expresses further conviction that bitcoin offers a non-sovereign store of value that may continue to appreciate against fiat currencies.
Metaplanet Adds More BTC to Its Reserve
Before the official announcement on Monday, Metaplanet has shown firm conviction in Bitcoin. Like MicroStrategy, the company continues to acquire more bitcoins.
As shown by Bitcoin Treasuries, Metaplanet invested ¥200 Million ($1.25 million) into its bitcoin acquisition on Friday and now holds about 117.7 bitcoins acquired at an average price of ¥10,193,536 ($65.4 million) per bitcoin.
Bitcoin has proven to withstand the test of time, as it has continued to appreciate since its invention in 2009. Currently, the cryptocurrency trades above $63,000 per BTC, as market analysts and popular figures predict a massive jump in its value.
