Japan-based Metaplanet Announces to Invest $58.7 Million in Bitcoin

Japanese firm Metaplanet is planning to invest around 8.5 billion yen in Bitcoin. The fund will go towards the crypto treasury and it was decided at a time when the Japanese stock markets are undergoing volatility.

Metaplanet Inc. has declared this fund during the 11th installment of stock acquisition meeting with common shareholders in attendance. The meeting was hosted and organized by board of directors of Metaplanet Inc.

As per this decision, the firm managed to raise around 10 billion yen valued at $69.13 million that are inclusive of 8.5 billion yen or $58.75 in Bitcoin investments. The common shareholders of the firm will receive stocks on 5th September and allotment will take place as on 6th September.

Metaplanet’s Investment in Bitcoin

The firm has decided to invest raised funds in the form of Bitcoin based on long-term appreciation of assets. In this manner, the firm will be able to hedge their bets against the ongoing currency depreciation.

The stock market in Japan recently reported the worst intraday drop since 1987. On this account, Bank of Japan increased interest rates on short-term basis for government bonds as on 31st July.

Following the decision, the interest rates went from 0% to 0.25% and started series of events that led to Bitcoin and Ethereum spot prices to plummet. As per the analysis, both cryptocurrencies dropped by 18% and 26%.

Metaplanet Working on Cryptocurrency Expansion

As of 8th July, Metaplanet announced that the firm is in the process of investing and consulting another Bitcoin purchase. On this account, the firm has rule in favor of purchasing $2.5 million in Bitcoins using 400 million yen and purchasing a total of 42.5 Bitcoins.

Following the purchase, Metaplanet acquired 203.7 Bitcoins at an average price of 10 million yen or $62 thousand per unit. The firm also declared entry into Bitcoin back in April this year.

As per the earlier announcement, Metaplanet has decided to add Bitcoin as a treasury asset and purchased the first reserve portion by investing $6.5 million. As of 25th July, Bitcoin Conference in Nashville was arranged where a number of important figures participated.

Among the institutional participants were Metaplanet, Semler Scientific, and MicroStrategy. During the event, scientists from Semler institute also appreciated the MicroStrategy Bitcoin investment strategy.

Simon Gerovich, Metaplanet CEO noticed that his firm was starting to show signs of zombie companies before pivoting into Bitcoin. Gerovich further noticed that the firm has realized Bitcoin as apex monetary instrument and its potential to form a great element for Japanese institutional treasuries.

Metaplanet Collects 1 Billion Yen to Invest in Bitcoin

Metaplanet has been dubbed as Asian version of MicroStrategy gathered $70 million through stock offerings. However, the firm recently collected $6.8 million in loans in order to invest in Bitcoin. The loan fund has been collected from shareholders of Metaplanet for $6.8 million or 1 billion yen.

MMXX Ventures, a firm affiliated with Metaplanet shareholders issued the loan at 0.1% interest rate annually. The loan has been issued for 6 months starting from 8th August.

The firm noted in a recent statement that it intends to pay back the loaned amount on a lump sum basis.  Around 100% of $6.8 million of the loan amount was awarded to Bitcoin investments.

The firm has noticed that it will enable additional 118.5 Bitcoins at the existing spot prices. The announcement was made two days after Metaplanet shared plans to raise $70 million by distributing stock offerings.

About $58 million of this amount is allocated for Bitcoin purchases. On 13th May the firm decided to adopt a new range of fiat market instruments to promote their Bitcoin reserves. The firm seems to have taken a page out of MicroStrategy.

As per the details, Metaplanet is also working on hedging their bets against the rising debt problem in Japan and depreciation of Yen. CEO Gerovich noticed that Metaplanet balance sheet eventually realized that Bitcoin was apex asset and shift the firm into a better position.