Bitcoin
Tokyo-Listed Metaplanet Outlines Bitcoin Plan Amid Growing Economic Pressure in Japan
Listed on the Tokyo Stock Exchange Metaplanet declared Bitcoin as its strategic reserve asset due to the current economic uncertainty permeating the Japanese economy, according to a May 13 statement.
The company he said:
“Metaplanet has adopted Bitcoin as its strategic treasury reserve asset. This measure is a direct response to sustained economic pressures in Japan, namely high levels of public debt, prolonged periods of negative real interest rates and, consequently, the weak yen.”
Metaplanet justified this change by highlighting the advantages of Bitcoin over Japanese yenincluding protection against currency devaluation, opportunities for speculative arbitrage in capital markets and taking advantage of Bitcoin’s tax benefits.
Meanwhile, the company’s latest move has continued with several pro-BTC decisions in recent months. In April, the company committed to Bitcoin as the treasury’s main asset, allocating 1 billion yen, around US$6.56 million, to the main digital asset, in a significant change in its financial strategy.
Since then, the Japan-based company has accumulated approximately 117.72 BTC, valued at 1.2 billion JPY or US$7.7 million. He also named Dylan LeClair, a staunch supporter of Bitcoin, as his Director of Bitcoin Strategy.
Bitcoin First Approach
Metaplanet said it would prioritize a “Bitcoin first [and] Bitcoin-only approach to your operations.
According to the company, this decision is rooted in its belief that the leading digital asset is “fundamentally superior to any other forms of political currency, traditional stores of value and investment, and all other cryptoassets/securities.”
It continued that the dependence of the BTC blockchain on proof of work (blow) the consensus mechanism is advantageous because “it is intrinsically linked to real-world energy inputs, reflecting the cost conditions observed in traditional commodities”.
Metaplaneta promoted:
“Bitcoin’s monetary policy is rigidly defined until 2140, differentiating it from both monetary metals and competing cryptographic projects operated at the whims of centralized teams of developers. There will only be 21 million BTC.”
Consequently, the Japanese public company stated that it would initiate various financial options, including periodically issuing shares and long-term liabilities in yen, to accumulate BTC instead of holding the “increasingly weak yen.”