Metaplanet bought 57 BTC recently with a $3.4 million bitcoin investment

Metaplanet stock jumped 12 percent after the Japan-based investment firm expanded its Bitcoin (BTC) holdings. Following the commitment earlier this month, the company invested 500 million yen (approximately $3.4 million) into Bitcoin.

Japan continues to strengthen its position as a leader in cryptocurrency adoption. As the yen weakens and government officials issue warnings, many investors are turning to digital assets as hedges.

In a commitment letter dated August 8, Metaplanet announced plans to purchase 1 billion yen worth of bitcoins. The latest acquisition fulfills that promise.

The investment firm bought 57.273 BTC at an average of 8,730,117 yen per token. With this purchase, Metaplanet's total bitcoin holdings increased to 360.368 BTC, at an average of 9,573,556 yen per BTC.

As previously reported by BeinCrypto, the company bought 20.195 BTC worth $1.02 million in early July, making it Japan's largest corporate bitcoin holder. The latest purchase further strengthens this position, indicating the increasing adoption of crypto in the country.

Read more: Who will have the most Bitcoins in 2024?

Metaplanet attributes its interest in Bitcoin to a microstrategy, with CEO Simon Jirovich citing Michael Seiler as the driving force behind their strategy. Like MicroStrategy, Metaplanet has steadily expanded its bitcoin holdings since April 2024.

“It was an honor and a privilege to meet Sailer in Nashville before the Bitcoin conference. Thank you for inspiring Metaplanet to adopt the Bitcoin standard,” noted Gerovich.

The company's strategy includes a June 11 purchase of $1.6 million worth of BTC, followed by a June 24 commitment to issue an additional $6 million worth of Bitcoin in bonds. Microstrategy's design has inspired many other organizations beyond Metaplanet, as businesses in a variety of industries are incorporating Bitcoin into their investment strategies.

Japanese Firms Flee to Bitcoin Amid Currency Weakening

In July, Metaplanet announced long-term bitcoin holdings as its primary strategy. The shift is part of a broader effort to reduce exposure to a weakened Japanese currency, the yen, and provide Japanese investors with access to crypto with a favorable tax structure.

BitMex CEO Arthur Hayes recently suggested that the Federal Reserve may use unlimited dollar-yen swaps to stabilize the yen's depreciation. Despite the hawkish stance of the Bank of Japan (BOJ), the currency remains volatile.

“We support the BoJ's view and it is favorable for further rate hikes, although the central bank is cautious as the last rate hike led to a sharp rise in the yen,” said Kazutaka Maeda, an economist at Meiji Yasuda Research Institute.

Japan's Economy Minister Yoshitaka Shindo added that the yen would gradually recover and earnings should improve. Shindo emphasized the government's commitment to working closely with the BOJ on flexible macroeconomic policies.

As the yen faces significant challenges, investors may look to alternative assets to protect their wealth. Bitcoin, considered by some as a store of value, is one option. Metaplanet's decision to adopt BTC as its reserve asset reflects its strategy to reduce risks from Japan's debt burden and yen volatility.