As a seasoned researcher with a background in financial markets and economics, I’ve witnessed the dynamic shifts in investment trends throughout my career. The recent announcement by Metaplanet, a Japanese investment firm, to expand its Bitcoin holdings to over 203 BTC, caught my attention.
Metaplanet, a Japanese investment company, recently bought 42.4 Bitcoins for approximately ¥400 million or equivalent to $2.4 million, expanding their existing Bitcoin holdings.
At present, Bitcoin is trading at a price of $57,652, representing an 8% decrease in value over the past week. It’s having a tough time surpassing the $60,000 threshold once more.
Metaplanet Expands Bitcoin Holdings
In a press statement issued on July 8, Metaplanet, headquartered in Tokyo, revealed its strategic decision to acquire Bitcoin. This action is intended to enhance its financial strategy for the long term by keeping the cryptocurrency as a significant part of its “reserve assets.” Notably, this recent transaction increased Metaplanet’s Bitcoin holdings beyond 203 coins.
Metaplanet’s rationale for investing in Bitcoin is rooted in Japan’s economic predicament. Factors contributing to this include sky-high government debt, prolonged bouts of negative real interest rates, and a consistently depreciating yen. The Japanese currency has recently touched its lowest point against the U.S. dollar since 1986 and recorded its weakest value against the euro in history.
Concurrently, according to a survey conducted by Nomura, over 500 Japanese investment managers are pondering allocating resources towards cryptocurrencies. Furthermore, approximately half of these respondents expressed a willingness to employ stablecoins for transaction settlements and routine financial dealings.
As a crypto investor, I’d rephrase it like this: Metaplanet has raised over $6.2 million through the issuance of its second series of ordinary bonds, which I’ve invested in via EVO FUND. These bonds come with an annual interest rate of 0.5% and are scheduled to mature on June 25, 2025.
Significantly, the bonds Metaplanet issued don’t include collateral as security. However, they are backed up by a first-lien mortgage on the Real Estate property of Hotel Royal Oak Gotanda, which is under the ownership of its affiliate company, Wen Tokyo Inc.
Metaplanet’s Strategic Bitcoin Acquisition
On Monday, July 1, Metaplanet revealed that it had bought an extra 20.195 Bitcoins for approximately 200 yen (equivalent to around $1.2 million) after the Tokyo Stock Exchange had closed its doors for the day. This announcement came following Metaplanet’s previous purchase of 250 million yen worth of Bitcoin in June.
Metaplanet’s decision to invest $97 million in Bitcoin is consistent with the expanding practice among businesses to view Bitcoin as a significant strategic asset. Notable companies, such as MicroStrategy, have adopted this approach, holding 226,331 Bitcoins valued at $14.1 billion as of July 2024. MicroStrategy has been actively increasing its Bitcoin holdings, purchasing an additional 11,931 Bitcoins for $786 million between April and June.
Bitcoin’s allure is expanding as more people embrace it amidst the volatile crypto market landscape. Factors contributing to this trend include the possible impact of events such as Mt. Gox’s potential asset liquidations and regulatory adjustments in Germany.
Read More
- PENDLE PREDICTION. PENDLE cryptocurrency
- W PREDICTION. W cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- EUR INR PREDICTION
- AAVE PREDICTION. AAVE cryptocurrency
- FIO PREDICTION. FIO cryptocurrency
- USD VND PREDICTION
- CSIX PREDICTION. CSIX cryptocurrency
- USD MXN PREDICTION
- CRTS PREDICTION. CRTS cryptocurrency
2024-07-15 06:42