Metaplanet Invests $6.3 Million in Bitcoin from Bond Sale

Japanese investment firm Metaplanet announced on Monday its acquisition of Bitcoin worth 1 billion yen ($6.3 million) using funds from a recent bond sale. Known as “Asia’s MicroStrategy,” Metaplanet revealed that its long-term Bitcoin holdings will be recorded at their acquisition cost, exempt from taxation based on end-of-term market value assessments.

Other Bitcoin holdings will be evaluated quarterly at market prices, with gains or losses reported under non-operating income or expenses.

Metaplanet’s Strategic Bitcoin Holdings

Metaplanet’s primary strategy is to hold Bitcoin long-term. However, if Bitcoin is used for operations, the balance will be listed as current assets on the balance sheet. This recent purchase adds to the firm’s previous three Bitcoin acquisitions within seven weeks, bringing its total holdings to over 240 BTC ($15 million).

Hedging Against Japan’s Economic Challenges

The move to invest in Bitcoin is part of Metaplanet’s strategy to hedge against Japan’s rising debt burden and the yen’s declining value. Japan faces high government debt and persistent negative interest rates, indicating significant fiscal challenges.

Metaplanet’s stock surged nearly 14% on Monday, marking a 37% increase over the past month. With its recent Bitcoin purchases, Metaplanet is now the 30th largest corporate Bitcoin holder globally, according to Bitcoin Treasuries.

While its Bitcoin holdings are modest compared to MicroStrategy’s 226,331 BTC, Metaplanet’s commitment to integrating Bitcoin into its treasury assets has garnered considerable attention.