Metaplanet Adopts Bitcoin as Reserve Asset Amid Japan's Economic Concerns

By: Isha Das

In light of deepening economic issues in Japan, Tokyo-based company Metaplanet has announced the adoption of Bitcoin as its strategic reserve asset. The move aims to counteract ongoing economic pressure in Japan, driven by high government debts, prolonged phases of negative real interest rates, and a weakening yen.

Metaplanet cited benefits of the digital currency such as protection from currency devaluation and potential speculative arbitrage in capital markets. The company also plans to capitalize on tax benefits offered by Bitcoin. This follows the firm's previous pro-Bitcoin decisions, including a commitment to Bitcoin as a core treasury asset in April.

The company has since accumulated about 117.72 Bitcoin, equating to 1.2 billion JPY ($7.7 million). They have also named Bitcoin advocate Dylan LeClair as Director of Bitcoin Strategy. Metaplanet will adopt a 'Bitcoin-first and Bitcoin-only' approach, valuing the digital asset for its proof-of-work (PoW) consensus mechanism and its fixed monetary policy.

To accrue more Bitcoin, the firm plans to launch financial options like periodic share issuance and long-dated yen liabilities.