Metaplanet Sets Up Offshore Entities for Bitcoin Bets

Tokyo investment firm Metaplanet has established offshore entities focusing on Bitcoin bets to help boost its investment in Bitcoin.

Metaplanet Inc., an investment firm headquartered in Tokyo, has recently disclosed that it is establishing a subsidiary in the British Virgin Islands to concentrate on its Bitcoin investments. The company intends to enhance its Bitcoin (BTC) holding management strategy through this action, as indicated in a post on the social media platform X.

Metaplanet Inc.’s Expansion of Bitcoin

Metaplanet Capital Ltd was the name of the BVI subsidiary, as per the announcement by Metaplanet’s Board of Directors. Metaplanet Capital Ltd will directly possess Bitcoin and engage in business activities associated with the premier digital asset. Metaplanet anticipates that Bitcoin will constitute a more significant portion of its balance sheet in the long term.

*Metaplanet establishes wholly-owned BVI subsidiary to enhance strategic $BTC management* pic.twitter.com/plmQ3xp72W — Metaplanet Inc. (@Metaplanet_JP) June 25, 2024

Upon its July inauguration, Simon Gerovich, CEO of Metaplanet, will serve as the organization’s representative. The organization intends to capitalize on international expansion opportunities by establishing its new subsidiary.

Furthermore, Metaplanet observed that the relocation enables it to capitalize on the advantageous regulatory environment in the BVI to enhance its financial strategies. Additionally, Microplanet establishes a precedent for other organizations regarding the potential for Bitcoin’s global expansion.

Metaplanet Capital Ltd maintains an initial capital of $10,000, as the specifics indicate. The parent company, Metaplanet Inc., is the primary shareholder, which is noteworthy. Although Metaplanet’s offshore subsidiary appears promising, the company anticipates its FY2023 financials will be constrained.

It is essential to mention that the announcement was made just one day after Metaplanet Inc. announced that its Board has signed agreements for a 1 billion yen ($6.26 million) BTC purchase. The capital for the BTC purchase will be raised through a forthcoming round of bond issuance, as disclosed in a Coinspeaker report. This will be the second series of ordinary bonds with guarantees.

Currently, the organization maintains an estimated 1.45 billion yen in Bitcoin. Although this figure is a mere shadow of MicroStrategy Inc’s (NASDAQ: MSTR) Bitcoin holdings, it signifies a bold foray into crypto integration. The COVID-19 pandemic struck the globe nearly four years ago in 2020, and MicroStrategy’s Bitcoin implementation commenced.

The company has recently acquired an additional 11,931 BTC for $786 million, bringing its Bitcoin chest to 226,331 BTC.

What is the Reason for Traditional Firms to Purchase Cryptocurrency?

Traditional institutions are increasingly interested in adopting Bitcoin due to various factors. Bitcoin has a finite supply restricted to 21 million coins, unlike fiat currencies that are susceptible to inflation due to central bank policies. This scarcity renders it appealing as a potential inflation hedge, similar to gold.

In anticipation of economic uncertainties, institutions perpetually pursue assets that can maintain their value over time. The limited supply of Bitcoin presents a compelling argument in this regard.

Additionally, conventional institutions are endeavoring to mitigate risk and diversify their portfolios. More institutions are now considering Bitcoin as an alternative asset class due to the successful launch of the spot Bitcoin ETF. This asset class has the potential to generate substantial returns.