Metaplanet Secures $6.3 Million Worth of Bitcoin Through Bond Sales
In a recent announcement, Japanese investment firm Metaplanet revealed its acquisition of Bitcoin valued at 1 billion yen ($6.3 million). The company stated that the funds used for the purchase were obtained through a bond sale.
Often referred to as “Asia’s MicroStrategy,” Metaplanet stated that its Bitcoin holdings, intended for long-term investment, will be recorded at their original purchase cost. These holdings are exempt from taxation based on the market value at the end of the term.
Additionally, the company stated that its other Bitcoin holdings will be evaluated at market prices on a quarterly basis. Any profits or losses resulting from these evaluations will be recorded as non-operating income or expenses.
Metaplanet Focuses on Long-Term Bitcoin Holdings as Core Assets
Metaplanet emphasized its primary strategy of retaining Bitcoin as a long-term investment. However, if the cryptocurrency is used for operational purposes or other reasons, the equivalent balance will be classified as current assets on the balance sheet.
Prior to this recent acquisition, Metaplanet had made three separate purchases of Bitcoin within a span of only seven weeks. The company’s most recent purchase was 23.25 Bitcoin, valued at approximately $1.59 million. This increased its total Bitcoin holdings to 141.07 BTC. With the latest purchase, the company’s total holdings would surpass 240 BTC ($15 million).
Metaplanet Turns to Bitcoin as a Response to Japan’s Increasing Debt
Metaplanet’s decision to invest in Bitcoin is largely motivated by the need to hedge against Japan’s growing debt burden and the declining value of the yen. The country’s high government debt and persistent negative interest rates highlight the fiscal challenges it faces.
In separate news, Metaplanet’s stock price saw a significant increase of nearly 14% on Monday, marking a 37% surge over the past month. With its recent acquisitions, the company now ranks as the 30th largest corporate holder of Bitcoin globally, according to Bitcoin Treasuries.
While Metaplanet’s Bitcoin holdings are relatively modest compared to MicroStrategy’s 226,331 BTC balance, its commitment to incorporating Bitcoin into its treasury assets has attracted considerable attention.
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