Metaplanet shifts treasury strategy, embraces Bitcoin amidst Japan’s economic woes

Metaplanet Inc., a Tokyo-listed crypto investment and consulting firm, announced its adoption of Bitcoin as a strategic treasury reserve asset, citing ongoing economic challenges in Japan. 

In a press release, the company said the decision stems from Japan’s prolonged economic difficulties, characterized by high government debt levels and persistently negative real interest rates, leading to a depreciation of the yen. Japan currently holds the highest government debt-to-GDP ratio among developed nations, standing at 254.6 percent, according to the International Monetary Fund. 

Bitcoin as store of value

“As the yen continues to weaken, Bitcoin offers a non-sovereign store of value that has, and may continue, to appreciate against traditional fiat currencies,” Metaplanet said. 

“While various forms of bitcoin exposure exist globally, including direct spot exposure and ETFs/ETPs, Metaplanet is implementing a bitcoin reserve strategy as a public operating company. This will give the company optionality unavailable to many global investors, including the potential for accretive capital market corporate management to acquire additional bitcoin exposure should the opportunity arise in public capital markets using debt or equity,” it added.  

Monetary policy assurance

Highlighting Bitcoin’s fixed supply and predetermined monetary policy, Metaplanet emphasizes the asset’s stability and resistance to inflationary pressures, contrasting it with conventional monetary metals and centralized crypto projects. 

Strategic allocation

The company plans to leverage a diverse range of capital market instruments to bolster its bitcoin reserves, aiming to optimize its exposure to the cryptocurrency’s potential upside. As of May 10, Metaplanet holds 117.7 BTC (€6.67 million), according to data from Bitcointreasuries.net. 

Long-term perspective

Metaplanet’s adoption of Bitcoin reflects a strategic shift towards embracing digital assets as a component of its treasury management strategy. By diversifying its reserves with Bitcoin, the company seeks to mitigate currency risk and capitalize on the asset’s perceived long-term value proposition.

“The strategy not only leverages a Bitcoin-centric approach, but also harnesses Japan’s unmatched global capital cost advantage, amplifying the Company’s competitive edge internationally,” Metaplanet said.