Metaplanet, a publicly traded company listed on the Tokyo Stock Exchange, has revealed its groundbreaking approach to combat the economic weakness of Japan and the devaluation of the yen. In a document shared on various social media platforms, the company announced its intention to prioritize bitcoin and utilize it as a reserve asset, capitalizing on the numerous opportunities available to increase its bitcoin holdings.
Metaplanet’s decision reflects a growing trend among companies to recognize and leverage the store of value properties inherent in bitcoin. The Tokyo-listed company aims to exploit bitcoin’s unique qualities as a reserve asset, and as such, it has adopted a “bitcoin first” economic strategy. Through the document shared on social media, Metaplanet affirmed its commitment to accumulating bitcoin instead of continuing to rely on the steadily weakening yen.
Metaplanet’s strategic shift is driven by the challenging economic climate in Japan, marked by one of the highest debt-to-gross domestic product ratios worldwide. Moreover, the yen has experienced a significant devaluation, reaching its lowest point against the U.S. dollar in 34 years. This necessitated intervention from the Bank of Japan to stabilize the exchange rate.
The company outlined several advantages of adopting the “bitcoin first” approach, including safeguarding itself against the depreciation of the yen, utilizing its reserves to acquire bitcoin through long-dated yen instruments, and leveraging the favorable tax regime for companies. With these measures, Metaplanet seeks to become a “bitcoin proxy” for investors, similar to how Microstrategy serves as an indirect avenue for investing in bitcoin.
Metaplanet emphasized that this paradigm shift not only strengthens the company’s balance sheet against the continuous debasement of the yen but also positions it as a globally recognized investment vehicle with a focus on bitcoin.
Metaplanet’s foray into bitcoin began in April when it announced the addition of 1 billion yen ($6.59 million) worth of bitcoin to its reserves. More recently, the company disclosed an additional purchase of 2 million yen ($1.25 million) in bitcoin for its treasury. Currently, Metaplanet holds 117.72 bitcoin.
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