Metaplanet Continues Bitcoin Holdings with $7 Million Purchase
Japanese investment firm Metaplanet has flexed its investment muscles again in the cryptocurrency market, adding more Bitcoin to its portfolios with the purchase of 107.9 Bitcoin. The transaction was worth 1 billion yen, approximately $7 million, giving meaning to a somewhat bullish entrance of Bitcoin into the fourth quarter.
With the latest purchase, Metaplanet increased its Bitcoin reserve to 506.7 BTC, or approximately 4.75 billion yen ($33.2 million). The company, with its ever-growing Bitcoin stash, is increasingly becoming a Japanese version of MicroStrategy, a U.S.-listed company which has been very aggressive in its Bitcoin purchases.
Firm Bets on Bitcoin to Hedge Against Inflation and Currency Instability
Here, the reasoning for Metaplanet’s Bitcoin strategy is fairly simple-to hedge for inflation and possible currency devaluation. If the COVID-19 pandemic has seen traditional financial assets come under considerable and increasing volatility, the firm has so far diversified by adding Bitcoin into its treasury reserves. In this respect, the leadership of Metaplanet looks upon Bitcoin as a hedge against the continuously falling value of the yen, with substantial growth potential over the long term.
Partnerships with SBI to Further Extend Bitcoin Capabilities
Not only has Metaplanet been continually stockpiling Bitcoin, but the company also recently announced it is partnering with the crypto wing of SBI Holdings in an effort to enhance its trading, storage, and management capabilities. This collaboration shall arm the firm with tools and strategies necessary to further enhance financial flexibility as the reserves of Bitcoin continue to grow.
Metaplanet also said that it will tokenize its shares with the help of the Bitcoin layer-2 network Liquid. This could further hike the firm’s investor base since global investors would be able to invest in the company, even from the US, despite some regulatory complications the Tokyo Stock Exchange has been creating.
This strategic approach combined with its increasing Bitcoin reserves places Metaplanet as one of the huge participants in both the traditional and crypto-financial markets.
