Metaplanet, a Tokyo-listed public company, has unveiled a “ bitcoin first” strategy to combat the Japanese economy’s weakness and the yen’s devaluation. In a document shared on social media, the company stated it will adopt bitcoin as a reserve asset, taking advantage of the available possibilities for increasing its holdings.
Metaplanet Unveils 'Bitcoin-First' Strategy to Face Japan's Economic Weakness
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Metaplanet Announces Bitcoin First Approach, Unveils Plans for Increasing Bitcoin Reserves
More companies are taking an interest in bitcoin’s store of value properties. Metaplanet, a Tokyo-listed public company, has unveiled a “ bitcoin first” economic strategy to take advantage of bitcoin’s unique possibilities as a reserve asset. Through a document shared on social media, Metaplanet vows to use the different possibilities and tools available as a public company to accumulate bitcoin instead “of retaining the ever-weaker yen.”
Metaplanet’s shift happens in the context of a downturn in the Japanese economy, which is currently suffering from one of the highest debt-to-gross domestic product ratios in the entire world. It is also facing a record devaluation of the yen, which has hit 34-year lows against the U.S. dollar, forcing an intervention of the Bank of Japan to stabilize the exchange rate.
The company outlined the advantages of adopting this “ bitcoin first” approach, including protecting itself from the yen’s depreciation, using its reserves to acquire bitcoin by issuing long-dated yen instruments, and taking advantage of the special tax regime for companies. With these measures, Metaplanet wants to become a “ bitcoin proxy” for investors, in the same way that Microstrategy has become an indirect vehicle for investing in bitcoin.
Metaplanet stressed that this paradigm shift “not only fortifies the company’s balance
sheet against the perpetual debasement of the yen, but also positions Metaplanet as a Bitcoin-focused investment vehicle globally.”
The company started buying bitcoin in April when it announced it would add 1 billion yen ($6.59M) in the form of bitcoin to its reserves. More recently, the company disclosed an additional purchase of 2 million yen ($1.25 million) in bitcoin for its treasury. Metaplanet currently holds 117.72 bitcoin.
What do you think about Metaplanet’s “ bitcoin first” new business strategy? Tell us in the comments section below.
