Metaplanet, a publicly traded investment firm, has made a significant change to its treasury management strategy by adding Bitcoin (BTC) as a reserve asset. The Tokyo-based company announced this “strategic shift” on May 13, stating that it will now prioritize a Bitcoin-first and Bitcoin-only approach. This decision is a direct response to the economic challenges faced by Japan, including high government debt levels, prolonged periods of negative real interest rates, and a weak yen.
Although the announcement does not disclose the exact amount of Bitcoin currently held or planned to be held in Metaplanet’s treasury, the company did reveal on May 10 that it purchased a total of 117.7 BTC ($7.19 million) at an average price of around 10.2 million yen ($65,000). Metaplanet currently has a market value of approximately 3.5 billion yen ($20 million).
Metaplanet’s adoption of Bitcoin comes a few weeks after the company initially revealed its new Bitcoin-focused strategy in early April, when it completed its first Bitcoin purchase worth $6.5 million. This move generated significant attention on social media and caused a sharp increase in the price of Metaplanet shares on the Tokyo Stock Exchange. The company’s stock, listed under the numeric symbol 3350, surged above 35 yen ($0.22) from 20 yen ($0.13) just hours after the Bitcoin purchase was announced.
Prior to embracing Bitcoin, Metaplanet primarily operated in the traditional investment sector. Established in 1999, the company originally engaged in hotel business, investment services, and investor relations consultancy.
The recent appointment of prominent market researcher Dylan LeClair as the director of Bitcoin strategy further underscores Metaplanet’s commitment to its new direction. CEO Simon Gerovich expressed his enthusiasm for the future, stating in a post on X that the Bitcoin purchase on May 9 was just the beginning.
The Japanese yen has reportedly been the worst-performing major currency against the United States dollar in 2024, reaching record lows in April not seen since the 1990s. Local sources attribute the yen’s depreciation over the past three years primarily to the gap between domestic and foreign interest rates and a growing trade deficit.