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Listed Tokyo-based investment firm Metaplanet has strategically moved to embrace bitcoin as a reserve asset to hedge against Japan’s soaring debt and yen volatility. According to an IMF report, Japan’s debt-to-GDP ratio has alarmingly reached over 254%, which is the highest for any developed nation. This economic backdrop has motivated Metaplanet to secure 117.7 BTC worth approximately $7.19 million, similar to a strategy implemented by U.S.-based MicroStrategy, in a move to minimize exposure to unstable fiscal policies and a depreciating yen, which has fallen by 50% against the dollar since 2021. In addition, the listed Tokyo-based investment firm has reshaped its portfolio to increase its exposure to commercial property, in line with a trend seen among leading investment managers in the region, as they allocate more capital to alternative assets that simultaneously enhance yield and mitigate risk.
The yen’s fall to a 34-year low points up how quickly Metaplanet must now be prepared to act, with Japan maintaining near-zero interest rates versus the Fed’s rate hikes over 5%. Currency interventions by the Bank of Japan add yet another layer of complexity to the situation, with it all standing in sharp contrast to Metaplanet’s efforts to leverage the potential of bitcoin as an antifragile store of value. This strategic asset allocation is set to shield the firm from ongoing fiscal turmoil, with plans to expand its bitcoin holdings through long-dated yen liabilities as opportunities arise.
