Metaplanet, a company based in Tokyo, has decided to use Bitcoin as a backup asset to protect itself from Japan’s growing debt problems and the shaky yen.
Japan’s debt compared to its income is the highest among advanced countries, more than 250%, says the IMF. Because of this, Japan can’t increase interest rates like other big banks, such as the Federal Reserve.
Metaplanet is following the lead of other companies like MicroStrategy by putting more focus on Bitcoin. Since April, Metaplanet has bought 117.7 Bitcoins, worth $7.19 million, instead of investing in Web3 projects like before.
This decision to embrace Bitcoin comes at a time when the yen is getting weaker against the U.S. dollar. Currently, it is reaching its lowest point in 34 years. This drop is because Japan isn’t raising its interest rates, which makes its money troubles worse.
Metaplanet wants to hold onto Bitcoin for a long time because it sees it as a good way to protect itself from problems with regular money. This is especially important now, with Japan’s money issues. They plan to get more Bitcoin by borrowing yen for a long time when it’s a good idea.
