Since declaring its Bitcoin strategy in April, Metaplanet has amassed around 117.7 BTC, valued at $7.2 million. Due to the continued decline of the Japanese Yen, Metaplanet, an investment company, has chosen to include Bitcoin (BTC) in its reserve assets.

The Tokyo-based company formally announced on May 13 that it is strategically shifting its treasury management. The firm is now emphasizing a Bitcoin-first and Bitcoin-only approach.

“This move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen,” the firm stated.

The company’s announcement did not disclose the amount of Bitcoin currently or planned to be in the treasury. On May 10, Metaplanet revealed that it bought 117.7 BTC ($7.19 million) at an average price of 10.2 million Japanese yen, or $65,000. Metaplanet’s market value remains at 3.5 million yen, or approximately $20 million.

                                                Source: Metaplanet

The company revealed that it had completed its first Bitcoin purchase worth $6.5 million. This comes a few weeks after Metaplanet announced adopting a Bitcoin-focused approach in early April. Metaplanet ‘s share price on the Tokyo Stock Exchange increased significantly as the company’s move to purchase Bitcoin gained widespread attention on social media.

Japanese yen falls

Listed under the numeric symbol 3350, Metaplanet’s stock surged above 35 JPY (40.22) from 20 JPY ($0.13) hours after the company announced its Bitcoin purchase in April.

Metaplanet primarily operated in the traditional investment scene before its strategic shift into Bitcoin. The company was founded in 1999 and originally ran investment services, a hotel business, and an investor relations consultancy.

This news came shortly after Metaplanet appointed a famous market researcher, Dylan LeClair, as director of Bitcoin strategy. “This is just the beginning.” Metaplanet CEO Simon Gerovich expressed in an article that the firm purchased more Bitcoin on May 9.

The Japanese yen has been one of the weakest currencies in 2024 against the U.S. dollar. In April, the Japanese yen currency fell to record lows last witnessed in the 1990s. According to local reports, the fall of the Japanese value over the previous three years has been attributed to the gap between domestic and foreign interest rates and the growing trade deficit.

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