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Metaplanet Adopts Bitcoin as Reserve Asset Amid Japan’s Debt Burden

Japanese investment and consulting firm Metaplanet has made Bitcoin (BTC) its primary asset for strategic treasury reserves. This decision aligns with current challenges, including Japan’s significant debt and fluctuations in the value of the yen.

On Monday, Metaplanet announced in a press release that its financial strategy firmly adopts a “Bitcoin-first, Bitcoin-only” stance. The approach incorporates financial tactics like maintaining long-term yen liabilities and issuing shares periodically to bolster Bitcoin holdings, in response to the yen’s diminishing value.

Recently, Metaplanet revealed it plans to invest approximately ¥200 Million ($1.25 million) in Bitcoin. As of May 10, the firm had added 19.87 BTC to its reserves.

According to data from Bitcointreasuries.net, since April, Metaplanet has accumulated a total of 117.7 BTC, valued at $7.19 million. This strategy mirrors that of MicroStrategy (MSTR), a U.S. company noted for its significant Bitcoin investments.

Metaplanet’s press release emphasized the shift in its treasury operations to Bitcoin, highlighting a suite of strategies intended to enhance value on a per-share basis measured in Bitcoin.

Japan’s Economic Environment Makes Metaplanet Pivot to Bitcoin

Japan is grappling with a financial crisis that has notably impacted the value of its currency, the yen. This is due to a combination of high national debt, extended periods of negative real interest rates, and the currency’s inherent volatility and weakness.

According to the International Monetary Fund (IMF), Japan’s debt-to-GDP ratio has surged to an alarming 254%, compared to the United States, where the debt-to-GDP ratio has reached 123%.

Since 2016, the Bank of Japan (BOJ) has maintained a negative interest rate policy, which was only recently adjusted to a slightly less negative range of 0-0.1% from -0.1%. These factors, coupled with Japan’s towering debt and enduring low interest rates, have contributed to the yen weakening by 50% against the dollar over the last decade.

In this context, Metaplanet has articulated a strong preference for Bitcoin, viewing it as fundamentally superior to traditional political currencies, conventional stores of value, investment vehicles, and other crypto-assets or securities.

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