Japanese Investment Firm Metaplanet Adds Bitcoin to Corporate Treasury, Following MicroStrategy's Path

Originally known as Red Planet Japan, Metaplanet, a Japanese investment firm that started as a budget hotel operator, has recently made headlines by adding Bitcoin to its corporate treasury.

Japanese investment and consulting firm Metaplanet has purchased an additional 20.38 Bitcoin, bringing its total holdings to 245.99 BTC.

The firm announced on Monday that it had acquired an additional 20.381 BTC at an average price of 9,813,061 yen per coin, hitting its 1 billion Japanese yen investment target. This follows up on its late June announcement to acquire more BTC totaling 1 billion yen (a little less than $6.4 million at the time of writing).

According to Metaplanet's press statement, its stock, which is listed as 3550 on the Tokyo Stock Exchange, closed the day at 173 yen, up 19% from its previous closing price. At one point during the day, the stock price reached 195 yen, up 34% from Friday's closing price.

Reducing Yen Exposure, Tax BenefitsMeta's purchase is part of a strategy to reduce its exposure to the weak Japanese yen (JPY) due to the country's low interest rates. Several goals are being pursued by Meta with this move.

Since Bitcoin has a limited supply and is not controlled by any government, it can serve as a hedge against inflation, which Meta is hoping to capitalize on to preserve its investments. Additionally, the company can reduce its reliance on the weak yen by purchasing Bitcoin.

Moreover, buying Bitcoin through Metaplanet can help avoid the high taxes on cryptocurrency profits in Japan. This move by Meta also aligns with Japan's evolving stance on cryptocurrency taxation.

In June 2023, the National Tax Agency of Japan lightened the tax burden on new cryptocurrency companies by exempting them from certain taxes.

Following MicroStrategy's LeadMeta's actions follow those of MicroStrategy, a U.S.-based software company that made headlines with its large-scale Bitcoin purchases, becoming one of the largest corporate owners of the cryptocurrency.

This move has not gone unnoticed by investors, with Meta's stock price showing signs of positive sentiment. Meta's strategy appears to be paying off as its stock price continues to rise.

The company's first purchase was not its last. On June 11, 2024, the company purchased an additional 23.5 BTC for 250 million yen (around $1.6 million).

A little over a month later, on July 16, 2024, Metaplanet invested another $1.2 million (200 million yen) in Bitcoin, bringing its total Bitcoin holdings to 1 billion yen.

As of now, Metaplanet owns a total of 245.992 BTC, valued at $16.56 million.

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