Metaplanet, a Japanese investment firm, announced Monday that it will acquire Bitcoin for 1 billion yen ($6.3m). The company announced in a statement that the funds for its acquisition will be sourced from a recent bond sale.
Metaplanet referred to as “Asia’s MicroStrategy,” has announced that its Bitcoin holdings intended for long-term storage will be recorded at their acquisition cost. These are exempt from taxation as a result of end-of-term market value assessments.
Additionally, it stated that the market prices of other Bitcoin holdings will be assessed every quarter. Any gains or losses from these evaluations will be documented under non-operating income or expenses.
Metaplanet Designates Bitcoin as a Core Asset and Pursues a Long-Term Hold
According to the organization, its foremost objective is to preserve Bitcoin for an extended period. However, the equivalent balance will be classified as current assets on the balance sheet if utilized for operations or other purposes.
Metaplanet had acquired three distinct Bitcoins in seven weeks before this most recent acquisition. The organization’s most recent acquisition was 23.25 Bitcoin, valued at approximately $1.59 million.
This resulted in a total increase in its Bitcoin holdings to 141.07 BTC. With Monday’s acquisition, its total holdings would rise to just over 240 BTC ($15m).
Japan’s Debt Woes Drive Metaplanet to Bitcoin
It is important to note that Metaplanet’s decision to invest in Bitcoin is a precaution against the yen’s declining value and the increasing debt burden in Japan. Its persistent negative interest rates and substantial government debt indicate Japan’s fiscal difficulties.
On Monday, the company’s stock price experienced a nearly 14% increase. This represents a 37% increase from the previous month. The corporation is currently the 30th largest corporate Bitcoin holder globally, per Bitcoin Treasuries, due to its recent acquisitions.
Metaplanet’s Bitcoin possessions are modest compared to MicroStrategy’s 226,331 BTC balance. However, its dedication to integrating Bitcoin into its treasury assets has garnered significant attention.