Metaplanet has amassed around 117.7 BTC, or $7.2 million, since unveiling its Bitcoin strategy in April.
As the value of the Japanese yen continues to fall, publicly listed investment company Metaplanet has decided to diversify its portfolio using Bitcoin.
On May 13, the Tokyo-based corporation Metaplanet formally declared a “strategic change” in its treasury management strategy, emphasising a Bitcoin-first and Bitcoin-only approach.
The corporation has announced its decision in reaction to ongoing economic challenges in Japan, including the country’s huge national debt, negative real interest rates, and the weakening of the yen.
The amount of Bitcoin owned or intended to be kept in Metaplanet’s treasury is not specified in the release. The news broke on May 10th that Metaplanet had spent $65,000 (or 117.7 BTC) at an average price of around 10.2 million yen ($7.19 million). About $20 million (or 3.5 billion yen) is the current market worth of Metaplanet.
Metaplanet announced the completion of its first Bitcoin acquisition at $6.5 million in early April, unveiling its new Bitcoin-focused strategy. A few weeks later, the firm adopted Bitcoin.
The decision boosted Metaplanet’s social media following and led to a dramatic surge in the stock price of the company on the Tokyo Stock Exchange. Listed under the ticker symbol 3350, Metaplanet’s value increased from 20 JPY ($0.13) in the hours after the announcement of its April Bitcoin acquisition to 35 JPY ($0.22) now.
Metaplanet mostly engaged in the conventional investing scene until it shifted its strategy into Bitcoin. When it first opened its doors in 1999, Metaplanet’s offerings included hotel management, financial advice, and investor relations services.
Metaplanet just named renowned market researcher Dylan LeClair director of Bitcoin strategy, so this announcement comes as no surprise.
“This is only the beginning,” stated Metaplanet CEO Simon Gerovich in an X post about the company’s increased Bitcoin purchases on May 9.
Reportedly, among major currencies vs. the US dollar in 2024, the Japanese yen has performed the worst, with April seeing a decline to levels not seen since the 1990s. Local sources indicate that the widening difference between Japanese and international interest rates, as well as the widening trade imbalance, are the primary causes of the yen’s depreciation during the last three years.
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