Japan’s Metaplanet Increases Its Bitcoin Reserves by $6.7 Million
Date: 2024-10-07 Author: Oliver Abernathy Categories: BUSINESS
Japanese company Metaplanet, known as an operator of budget hotels, recently purchased $6.7 million worth of Bitcoin. The move significantly increased its total reserves to 639.50 BTC.
In a statement on October 7, the company announced the purchase of ¥1 billion worth of Bitcoin, equivalent to 108,786 BTC. This was the second such purchase in October, highlighting the company’s active participation in the crypto market. With the completion of this transaction, Metaplanet’s total reserves are valued at approximately $40.54 million at current market prices.
According to Google Finance, the company’s shares rose more than 10% shortly after the announcement of the Bitcoin purchase, indicating a positive reaction from investors to Metaplanet’s decisions.
On October 1, the company made a similar purchase for ¥1 billion, allowing it to surpass the 500 BTC mark for the first time in its crypto trading. This indicates the company’s growing interest in digital assets as a way to diversify and hedge against economic risks.
In addition, on October 3, Metaplanet entered into a deal with Singapore-based trading firm QCP Capital involving bitcoin options. As part of this agreement, the Japanese firm sold 223 contracts of put options worth $62,000 expiring on December 27, 2024. The transaction brought the company a profit of 23.97 BTC in the form of option premium.
Metaplanet is not the only Japanese company betting on cryptocurrencies to support its profitability. According to a survey conducted in June by Nomura and Laser Digital, more than 500 investment managers in Japan expressed interest in investing in crypto assets. The study also found that about half of respondents are willing to use stablecoins for payments and everyday transactions.
Metaplanet previously announced that it plans to begin acquiring Bitcoin as a measure to protect itself from the economic challenges Japan faces. In May 2024, the country experienced high levels of government debt, prolonged periods of negative real interest rates, and a weakening national currency.
Thus, Metaplanet’s actions demonstrate not only its strategic approach to investment, but also the general trend in the Japanese market towards integrating cryptocurrencies into business models.
