Japanese Firm Metaplanet Doubles Down on Bitcoin (BTC) Strategy Despite Market Downturn

Despite a recent downturn in Bitcoin's [BTC] price, affecting the broader cryptocurrency market, Japanese firm Metaplanet is doubling down on

Japanese firm Metaplanet Inc. is planning to bolster its Bitcoin (BTC) holdings in a big way.

According to an announcement on 24 June, the firm will be issuing ¥1 billion ($6.2 million) in bonds at a 0.5% interest rate to purchase BTC.

This move signals a strong commitment from Metaplanet to integrating cryptocurrency into its asset management strategy.

“Metaplanet Inc. (3350:JP) hereby announces that the Board of Directors has resolved to purchase Bitcoin worth 1 billion yen as of today’s meeting. The funds for this purchase will be allocated from the capital raised through the issuance of the second series of ordinary bonds (with guarantees), as disclosed separately today in the “Announcement on the Issuance of the Second Series of Ordinary Bonds (with guarantees).”

The announcement also included details on how Metaplanet will be accounting for its BTC investments for the upcoming fiscal year.

As per the notice, BTC designated for the long term will be logged at acquisition cost, exempting them from market value taxation at the year’s end.

Meanwhile, other Bitcoin assets will be regularly assessed at market value each quarter, with any gains or losses impacting non-operating financial results.

Lastly, despite a general policy of retaining BTC for extended periods, the company noted that any Bitcoin used for operational purposes would be accounted for as current assets on their balance sheet.

Metaplanet’s decision to acquire more Bitcoin through bond issuance aligns with the strategies employed by several prominent companies, such as MicroStrategy, which have adopted similar tactics to increase their BTC reserves.

In April, Metaplanet initially added Bitcoin to its balance sheet, following MicroStrategy’s approach to using debt financing for purchasing Bitcoin.

The firm’s shift towards significant cryptocurrency investment marks a transition from its earlier focus on operating budget hotels.

This move is part of a broader strategy to diminish the company’s reliance on the weakening Japanese yen, which has hit its lowest level against the U.S. dollar since 1990.

News source：https://www.kdj.com/cryptocurrencies-news/articles/japanese-firm-metaplanet-doubles-bitcoin-btc-strategy-market-downturn.html

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