Metaplanet Expands Bitcoin Holdings with 20 BTC Purchase, Following Michael Saylor's Playbook
Japanese investment firm Metaplanet has acquired 20.2 Bitcoin. This latest purchase brings its total holdings to 161.3 BTC. Michael Saylor isn't going to be jealous, just yet. But it's only a beginning of the long path to compete with him.
The Tokyo-based company invested 200 million yen ($1.2 million) in this acquisition. Metaplanet announced the purchase on social media after the Tokyo Stock Exchange closed.
Last week, Metaplanet revealed plans to invest $6 million in Bitcoin. The funds for this purchase will come from a recent bond sale.
The company, dubbed "Asia's MicroStrategy," will record its long-term Bitcoin holdings at acquisition cost. These are exempt from quarterly market value assessments for tax purposes.
Other Bitcoin holdings will be evaluated at market prices each quarter. Gains or losses will be recorded under non-operating income or expenses.
Metaplanet decided to incorporate Bitcoin into its treasury assets in April. The move aims to reduce exposure to the Japanese yen, affected by low interest rates. Simply put, Bitcoin seems more stable for long-term investments, that yen.
The company sees Bitcoin as a hedge against inflation and a tool for macroeconomic resilience.
Metaplanet's strategy mirrors that of MicroStrategy, a Virginia-based software developer. MicroStrategy, run by Michael Saylor, has been buying Bitcoin for nearly four years. It now holds over 226,000 BTC, more than 1% of Bitcoin's total supply. That makes Saylor a constant and unyielding Bitcoin bull.
This approach is not unique to Metaplanet and MicroStrategy. More companies are likely to follow suit. Corporate treasurers are exploring Bitcoin as a reserve asset due to economic uncertainties. The most popular way to obtain some Bitcoin is, of course, buying ETFs. Thus you don't need to hold actual crypto, secure the keys, whatsoever.
But some companies do like it Saylor's way.
Abra, a digital asset platform, reports increasing interest from non-crypto businesses in using Bitcoin as a treasury reserve asset. Marissa Kim, Head of Asset Management at Abra Capital Management, notes particular interest from real estate companies and SMBs.
The trend reflects growing concerns about inflation and geopolitical tensions. It suggests a shift in corporate treasury management strategies. More companies may adopt Bitcoin as a hedge against economic instability.
