Metaplanet, a prominent Web3 infrastructure provider listed on the Tokyo Stock Exchange, has taken a significant leap into the world of Bitcoin. This move reflects a growing trend among businesses seeking stability amidst economic uncertainties, especially in Japan where debt and currency values remain volatile.
Here are the developments.
Metaplanet recently acquired 117.7 BTC, valued at a substantial $7.19 million. This mirrors similar moves by MicroStrategy, a U.S. company known for its aggressive Bitcoin purchases. It highlights a broader shift among businesses turning to cryptocurrencies as a buffer against market turbulence.
The decision was influenced by the difficult economic situation of Japan, which the IMF defines as having the largest global burden of debt compared to gross domestic product (GDP). However, this is worsened by the Bank of Japan’s unwillingness to raise the rates like major economies; hence, rates end up being close to zero when other countries increase them due to inflation.
Consequently, the yen has dropped up to 5% in addition to other consequences.
In a statement, Metaplanet expressed confidence in Bitcoin’s potential as a decentralized store of value. It sees Bitcoin as a hedge against currency devaluation, contrasting it with traditional fiat currencies controlled by governments.
“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.”
The company also criticized the BOJ’s current fiscal strategies, labelling them as part of an “unsustainable monetary paradox.”
Metaplanet’s Bitcoin venture isn’t a short-term play; it’s a strategic move to manage tax liabilities and capitalize on potential Bitcoin growth. By using long-term yen-denominated debts, the company aims to protect its finances while leading the way in Japan’s corporate cryptocurrency adoption.
Metaplanet can potentially gain a lot through its active shift towards investing in cryptocurrency since Bitcoin is currently being exchanged at 62,757.83 dollars per one Bitcoin, thus indicating a very slow but sure rise. Moreover, with another 1.25 million US dollars (200 million yen) recently spent on bitcoins by the firm, it now means that this kind of money is also part of their financial planning.
Metaplanet’s intelligent shift from traditional currency to bitcoins solves Japan’s economic woes and the fluctuating yen. In addition to guarding against business uncertainties, the adoption of digital cash enables the company to be the first one in Japan to use this system, putting it in a competent position.
If followed, such a course of action will indicate a new direction for other firms facing comparable financial crises, thus encouraging wider adoption among them.
Looking for ways to hedge against inflation? Metaplanet’s strategy might be worth considering. Do your own research and see if Bitcoin might be a fit for your portfolio.
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