- Metaplanet’s stock rose 90% after adding $6.56 million in bitcoin to its balance sheet in partnership with Sora Ventures and other crypto investors.
- The move aims to reduce yen exposure and offer Japanese investors crypto access with a preferential tax structure.
Red Planet, formerly a low-cost hotel chain now transitioned into a Web3 software developing company, expressed their intention to decrease reliance on the Japanese yen.
The yen has weakened, according to the company’s shareholder update, due to Japan’s prolonged period of low-interest rates which have diminished its role as a major global currency. In March, the central bank raised short-term interest rates from negative 0.1% to between 0 and 0.1%, marking the first increase in seventeen years.
The company explains that it’s considering adding Bitcoin to its financial reserves for several reasons. Firstly, as a protective measure against inflation. Secondly, as a means to strengthen the company economically in larger economic contexts. Lastly, as an investment with potential for long-term profit growth.
MicroStrategy’s approach follows that of Tysons Corner-based MicroStrategy, a software company, which announced in 2020 its intention to amass significant bitcoin holdings. Consequently, the company’s stock price has frequently synchronized with bitcoin’s price changes, indicating investor attitude towards the cryptocurrency market. Currently, MicroStrategy holds over 214,000 bitcoins, valued at more than $15 billion, making it the biggest corporate Bitcoin owner, as per bitcointreasuries.net.
Jason Fang, managing partner and co-founder at Sora Ventures, mentioned in a recent post that adding bitcoin to Metaplanet’s balance sheet was an opportunity for Japanese investors to invest in cryptocurrency through a publicly traded company rather than directly holding the asset, which comes with a significant tax on unrealized crypto gains.
Since its introduction, this tax has sparked controversy among lawmakers who have continued to debate and make changes to it. Notably in June 2023, Japan’s National Tax Agency declared that cryptocurrency startup-issued tokens would no longer be subject to these regulations.
Bitcoin is currently trading around $70,500, according to CoinDesk Indices data.
Read More
- Finding Resources in Palworld: Tips from the Community
- UFO PREDICTION. UFO cryptocurrency
- The Last Epoch Dilemma: Confronting the Gold Dupe Crisis
- BONE PREDICTION. BONE cryptocurrency
- W PREDICTION. W cryptocurrency
- EUR HKD PREDICTION
- Michelle Yeoh Will Not Appear in ‘Avatar 3,’ Says James Cameron: ‘She’s in 4 and 5’
- TANK PREDICTION. TANK cryptocurrency
- Skull and Bones: Gamers’ Frustrations with Ubisoft’s Premium Content Delivery
- Last Epoch: Why Keystroke Registration Issues Are Frustrating Players
2024-04-09 13:16