The Birth of Asia's Version of MicroStrategy: MetaPlanet's "Bitcoin Purchase Plan" Announcement

In a move that echoes MicroStrategy's tremendous commitment to bitcoin, Metaplanet Inc. announced plans to diversify its capital management strategy by investing up to $6.58 million in bitcoin.

This strategic decision underscores the increasing acceptance and potential growth of Bitcoin in the face of global economic uncertainties, promising a fascinating journey ahead for MetaPlanet and its stakeholders.

Metaplanet Announces Plan to Invest up to $6.58 Million in Bitcoin

MetaPlanet Co., Ltd., listed on the Tokyo Stock Exchange Standard Market, announced on April 8, 2024, its policy to purchase and hold Bitcoin (BTC) as part of its capital management strategy.

Metaplanet's board of directors decided on a bitcoin purchase plan at its meeting on August 8, explaining that it will purchase and hold bitcoin with the funds raised, with the total amount of bitcoin purchased up to $6.58 million.

The reason behind the decision to purchase Bitcoin is attributed to "the weakening of the Japanese yen over the past few years due to prolonged yen depreciation and negative interest rate policies."

Furthermore, "on the other hand, cryptocurrencies like Bitcoin have been gaining prominence, to the extent that countries are beginning to adopt them as official currencies."

The company explained that it plans to raise approximately $6.16 million by exercising its warrants, and that it plans to diversify its currency holdings and build a self-position with low exposure to the Japanese yen by buying and holding BTC like a micro-strategy that continues to buy BTC.

The Background Behind the Decision to Invest in Bitcoin

In its announcement, MetaPlanet elaborated on "the potential of Bitcoin," citing five key factors behind its decision to invest:

Inflation and Currency Hedge

In an era of unprecedented monetary expansion and, in Japan's case, an era of perpetually low interest rates, Bitcoin's fixed supply contrasts with the potential devaluation of fiat currencies, providing a hedge against the declining purchasing power of currencies like the Japanese yen.

Macroeconomic Instability

Amid global economic uncertainty, Bitcoin stands out as an asset that is not tied to the economic policies or economic conditions of any country, offering a measure of stability. Additionally, in politically unstable times, Bitcoin functions as the ultimate safe haven, unaffected by political intentions or geographical instabilities.

Acceptance and Growth Potential in Major Countries and Financial Spheres

The recent approval of Bitcoin ETFs in the United States, along with the increase in adoption (and accumulation) by institutional investors, underscores Bitcoin's established legitimacy and its potential for significant long-term growth.

Fixed Supply and Digital Scarcity

The issuance limit of 21 million coins for Bitcoin introduces an asset class that, unlike traditional fiat currencies that can be printed indefinitely, is evaluated based on the principles of supply and demand.

Leveraging Technological Innovation

Adopting Bitcoin, as we leverage the forefront of financial technology, signifies a commitment to incorporating digital innovation into our capital management policies.

Strengthened by New Strategic Investor Contributions

MetaPlanet explained that its Bitcoin investment strategy would be bolstered and reinforced by contributions from new strategic investors.

This strategic partnership consists of a distinguished group of cryptocurrency experts, bringing experience in innovative financial strategy areas such as digital assets and blockchain technology to the company.

Furthermore, the company detailed the following operational guidelines for Bitcoin purchasing and risk management:

1. Appointment of investment officers and managers with clear roles
2. Fair value accounting for financial statement preparation
3. Secure storage methods for Bitcoin
4. Investment and operation policies

The balance of Bitcoin held will be fair valued quarterly, and any valuation gains or losses will be recognized as special items in the income statement. In case of significant impacts on quarterly performance, disclosures will be made promptly.

The initiative to continuously purchase and hold Bitcoin over the long term is also practiced by "MicroStrategy" and "El Salvador," but this announcement is globally recognized as the birth of "Asia's version of MicroStrategy."

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