Metaplanet Inc., a consultancy based in Tokyo, has recently invested more than $6.2 million in Bitcoin for long-term holding purposes. Specializing in hotel and crypto consulting, the firm raised ¥1 billion yen by issuing a second series of ordinary bonds to fund this investment, as per a statement released on June 24th.
While Metaplanet’s main strategy is to hold onto Bitcoin for the long run, they haven’t ruled out using the cryptocurrency for operational or other needs. The bonds, which will be available through EVO FUND, offer an annual interest rate of 0.5% and will mature on June 25, 2025.
Despite the lack of collateral for these bonds, Metaplanet has secured a first-priority mortgage on the Hotel Royal Oak Gotanda’s land and building, owned by their subsidiary Wen Tokyo Inc., to safeguard all financial claims. Following this announcement, Metaplanet’s stock prices surged by over 9% on the Tokyo Stock Exchange, according to data from Google Finance.
This isn’t Metaplanet’s first venture into cryptocurrency, as they already hold 141 BTC on their balance sheet, as disclosed in a separate filing. This recent investment highlights their dedication to Bitcoin as a key asset in their strategic treasury reserves.
In light of ongoing economic challenges in Japan, including high government debt and negative real interest rates, Metaplanet made the decision to start purchasing Bitcoin back in May. This move reflects their belief in cryptocurrency as a safe haven in a volatile economic climate.
Metaplanet isn’t the only organization in Japan looking to crypto for stability. A survey conducted by Nomura in collaboration with Laser Digital found that over 500 investment managers in Japan are contemplating investing in cryptocurrency. Additionally, around half of the respondents are open to using stablecoins for daily transactions and settlements.
As the Japanese yen continues to lose ground against Bitcoin, it seems that more and more entities are turning to cryptocurrency for security and financial growth.