Metaplanet, a publicly traded investment firm, has made a bold move by adding Bitcoin (BTC) to its reserve assets. This decision was made in response to the ongoing decline of the Japanese yen. In an official announcement on May 13, the Tokyo-based company stated that it is undergoing a “strategic shift” in its treasury management strategy, opting for a Bitcoin-first and Bitcoin-only approach.
Metaplanet justified this move by pointing to the sustained economic pressures in Japan, such as high government debt levels, prolonged periods of negative real interest rates, and the consequent weakness of the yen. However, the announcement did not disclose the exact amount of Bitcoin that is currently held or planned to be held in Metaplanet’s treasury.
Just a few days prior to this announcement, on May 10, Metaplanet revealed that it had purchased a total of 117.7 BTC (equivalent to $7.19 million) at an average price of around 10.2 million yen or $65,000. The market value of Metaplanet currently stands at approximately 3.5 billion yen or roughly $20 million.
Metaplanet’s decision to adopt Bitcoin as a key asset comes after the company had already signaled its new Bitcoin-focused strategy in early April. At that time, it announced the completion of its first Bitcoin purchase, amounting to $6.5 million. This move generated significant buzz on social media and led to a sharp increase in the price of Metaplanet shares on the Tokyo Stock Exchange.
Before embracing Bitcoin, Metaplanet primarily operated in the traditional investment sector. Established in 1999, the company initially engaged in hotel business, investment services, and investor relations consultancy.
In a recent development, Metaplanet appointed Dylan LeClair, a prominent market researcher, as the director of Bitcoin strategy. CEO Simon Gerovich expressed his enthusiasm for this new direction and hinted at more Bitcoin purchases in the future.
The Japanese yen has been reported as the worst-performing major currency against the United States dollar in 2024. It reached record lows in April, not seen since the 1990s. Local sources attribute the yen’s depreciation over the past three years to the disparity between domestic and foreign interest rates and a growing trade deficit.
Overall, Metaplanet’s decision to prioritize Bitcoin as a reserve asset marks a significant shift in its investment strategy and reflects the company’s response to the economic challenges faced in Japan.