Japan’s Metaplanet Raises Funds to Acquire More Bitcoin
As per the report, Metaplanet is planning a 1 billion yen or $6.26 million in bond sales as a way to raise funds.
Bitcoin Investment Plans
The firm intends to use the funding in order to purchase Bitcoins. The organization has retained that as of 24th June 2024, the board of the investment advisory firm has ruled in favor of Bitcoin investment plans.
The firm has declared that the investment in Bitcoin is going to take place on a long-term holding basis. The spokesperson stated that bonds will generate a yield at 0.5% APR.
Following the announcement, the shares of Metaplanet gained 11.5% on Monday trading at 96 yen or $0.60. In this manner, the investors of the firm took a 500% gain on their stock holdings as per Google Finance projections.
However, Bitcoin prices have dipped to 40-day lows with a 2.6% decline during the last 24 hours. At press time, the flagship token is trading at $62,733 after reaching $72,000 in the early days of June as per CoinGecko projections.
If and when Metaplanet purchases 1 billion yen worth of Bitcoin, it would be able to acquire 100 Bitcoins at the market price point.
Metaplanet Adopts Slow and Steady Approach to Buy Bitcoin
The latest bond sales plans are not the first time that Metaplanet is investing in Bitcoin. The firm invested in Bitcoin earlier in June, when it purchased 23.25 Bitcoins. The total Bitcoin holdings of the firm stand at 141.07 Bitcoins.
The firm forayed in Bitcoin investment in the middle of May with a 117 Bitcoin purchase. At the time, the firm introduced its Bitcoin first and Bitcoin only policy to the treasury reserve.
The investment strategy stemmed from persisting economic challenges in Japan. Metaplanet noticed that earlier in June, the average purchase price per Bitcoin unit in its portfolio was 10 million yen or $65,400 per unit.
In this scenario, a Bitcoin purchase now could translate into a tank on this strategy. Metaplanet’s Bitcoin investment policies and ensuing share price hikes have earned it a semblance with MicroStrategy in the United States.
MicroStrategy is an American software services provider that has a record for public firm with the biggest Bitcoin reserve. At present, the firm has 214,000 Bitcoins valued at $13 billion as per statistics from Bitbo.
Japanese Institutional Investors Want to Invest in Digital Assets
54% of the institutional investors hailing from Japan have showed an interest to invest in cryptocurrencies. A recent survey conducted by Nomura Holdings indicates these results.
The survey in question was conducted in association with digital assets firm Laser Digital. The survey gathered feedback from 547 investment managers which include wealth managers, public-service firms, and institutional investors.
This study will unveil the stance of investment brass in Japan on the subject of digital assets and collect feedback on challenges associated with this trade.
As per the survey results, 54% portion of investment advisors were positive about investing in digital assets for the upcoming 3 years. This portion of participants retained that they were planning on or have a higher probability of investing in one or other form of digital assets.
Meanwhile, the remainder of the users retained that they did not wish to invest in crypto nor had plans to do so.
The participants with positive stance on digital asset were asked why and they responded by citing utility such as portfolio diversification and high profits. At the same time, 60% of the survey participants perceived cryptocurrencies as an investment diversification.
Some of the investment consultants also shared factors such as low correlation with other digital assets, 24/7 trading, and inflation hedging. The majority of managers opted for a 25% asset allocation in digital assets. As per researchers, some of the important key factors for cryptocurrency growth in Japan are staking, ETFs, and lending.
