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Publicly traded company Metaplanet Inc. has acquired 42 more bitcoins worth 400 million yen ($2.4 million), defying shifting cryptocurrency market sentiment amid further selling pressure from major entities.
The Tokyo-based firm’s latest acquisition is part of a push to strengthen its cryptocurrency, bringing the company’s total to Bitcoin holdings of 203 BTC, according to a public disclosure declaration Sunday.
Last month, the firm formed a wholly-owned subsidiary, Metaplanet Capital Limited, as part of its strategic initiative to increase its Bitcoin holdings and capitalize on international growth opportunities.
“Metaplanet will utilize excess cash flow and implement accretive corporate governance, including financial management strategies such as debt and equity financing, to promote Bitcoin accumulation,” the company said. manifest law.
The purchase of Metaplanet comes at a time when Japan is still grappling with decades-old economic challenges.
The yen’s exchange rate has fallen steadily, falling to 160.96 against the U.S. dollar and 173.81 against the euro. This marks the yen’s weakest against the dollar since 1986 and its lowest value against the euro on record.
The country faces prolonged economic stagnation, an aging population and a shrinking workforce, further exacerbating Japan’s situation. financial headaches.
Faced with weak demand, the Bank of Japan (BOJ) has maintained an accommodative monetary policy, attempting to stimulate growth by keeping interest rates low, even as other major developed nations are moving in the opposite direction.
While Metaplanet is relatively small, with a valuation of $97 million, its purchase is in line with other companies looking to add the world’s largest cryptocurrency to their balance sheets, including MicroStrategy.
As of July 2024, MicroStrategy holds a total of 226,331 BTC worth $12.5 billion. The company increased its Bitcoin holdings, including 11,931 BTC, by approximately $786 million between April and June.
The strategic acquisitions by Metaplanet and others come despite shifting cryptocurrency market sentiment, influenced by factors such as the potential liquidation of assets from the defunct Mt. Gox exchange and the German government.
Metaplanet share price rose 1.2% in early Asian trading, settling at around $0.50.
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