Key Points
- Metaplanet Inc., a Tokyo-based crypto investment firm, has chosen bitcoin as its strategic treasury reserve asset due to Japan’s economic challenges.
- Bitcoin’s fixed monetary policy and its appreciation against fiat currencies were cited as reasons for the move.
Metaplanet Inc., a crypto investment and consulting firm listed in Tokyo, has opted for bitcoin as its strategic treasury reserve asset. The decision comes in the wake of ongoing economic hardships in Japan.
Japan’s Economic Woes
Japan’s economic struggles, including high government debt levels, extended periods of negative real interest rates, and a subsequently weak yen, have prompted this move. The International Monetary Fund reports that Japan currently has the highest government debt-to-GDP ratio among developed nations at 254.6%. This has led to the Japanese yen falling to its lowest point in 34 years last month, despite a March decision by the government to increase interest rates.
Bitcoin as a Store of Value
Metaplanet Inc. regards bitcoin as a “non-sovereign store of value” that has shown appreciation against fiat currencies. The company underscored the rigidity of bitcoin’s monetary policy, which is firmly established until 2140. This sets it apart from monetary metals and other crypto projects that are subject to the decisions of centralized developer teams. The firm also highlighted that there will only ever be 21,000,000 bitcoins.
The release from Metaplanet further stated that the company plans to use the “entire range” of capital market instruments to increase its bitcoin reserves. As of May 10, data from Bitcointreasuries.net indicates that the company held 117.7 BTC, equivalent to $7.2 million.
