A Japanese investment firm has leveraged Bitcoin’s use case as a reserve asset, amidst weakening strength in the Japanese yen, and as a means of diversification as well.
Bitcoin’s use case as an alternative investment asset is already well-known worldwide. Metaplanet, an investment firm in Japan, has highlighted this by using Bitcoin as a reserve asset. Metaplanet also published a press release highlighting the reasons for their move. It noted several benefits of Bitcoin reserves and explained them in detail.
The firm factored in the weakening Japanese yen and economic pressures for their decision. It said, “This move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen.”
A few days ago, the company disclosed it had purchased around 117. 7 BTC. In April this year, it announced a Bitcoin investing strategy and termed itself ‘Asia’s first MicroStrategy.’ The announcement initially caused a rally in its share price.
Further, the press release noted the reasons for the diversification strategy. First, it stated how Bitcoin would be a hedge against currency depreciation in Japan. Second, it said it would leverage Bitcoin for strategic currency arbitrage. Third, it revealed it will use its Bitcoin reserves as an operating company to increase its adoption with investors worldwide.
Praising Bitcoin’s fundamentals, it described its strategy as ‘Bitcoin first, Bitcoin only.’ Moreover, the tax advantages for crypto firms in Japan could also benefit Metaplanet in its investments.
Japan’s tax benefits for crypto firms are a new policy move in 2024. After active lobbying from trade associations, it removed taxes on unrealized gains from crypto holdings. Moreover, Japanese authorities have allowed firms to issue crypto assets to raise funds, making the country a favorable industry hub.
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