{"id":607739,"date":"2024-05-13T19:00:44","date_gmt":"2024-05-13T19:00:44","guid":{"rendered":"https:\/\/wncen.com\/?p=607739"},"modified":"2024-07-11T10:23:32","modified_gmt":"2024-07-11T10:23:32","slug":"investment-firm-makes-bitcoin-its-strategic-reserve-impact-on-price","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/investment-firm-makes-bitcoin-its-strategic-reserve-impact-on-price\/","title":{"rendered":"Investment Firm Makes Bitcoin Its Strategic Reserve – Impact On Price"},"content":{"rendered":"
Early-stage investment firm Metaplanet announced on Monday that it’s adopting Bitcoin (BTC) as its sole “strategic treasury reserve asset.”<\/p>\n
This audacious decision signals a growing confidence in the controversial cryptocurrency as a legitimate store of value and hedge against traditional economic woes.<\/span> Metaplanet’s decision comes amidst a backdrop of sustained economic pressures in Japan. A weakening yen, coupled with high government debt levels and persistently low-interest rates, seems to have pushed the firm to seek alternative havens for its reserves.<\/span> Bitcoin<\/a>, with its finite supply and decentralized nature, appears to be their answer.<\/p>\n In a clear statement of intent, Metaplanet outlined its new “Bitcoin-first, Bitcoin-only approach”<\/a> to treasury management. The company plans to strategically convert its existing yen liabilities and future share issuances into BTC, effectively accumulating more of the digital asset over time.<\/span> This strategy echoes the recent moves of US-based MicroStrategy, which has become a major institutional holder of Bitcoin.<\/p>\n <\/p>\n Metaplanet’s press release paints a glowing picture of the top crypto asset’s potential.<\/span> They view it as “fundamentally superior” to traditional currencies and other investment options, highlighting its scarcity and lack of a central issuer. They are impressed by Bitcoin’s proof-of-work (PoW)<\/a> consensus mechanism, emphasizing how it creates a progressively higher cost of production for the remaining coins yet to be mined.<\/span> This, they argue, stands in stark contrast to traditional commodities whose supply can be readily increased. <\/p>\n
\n<\/span><\/p>\nYen Under Pressure, Bitcoin On The Rise<\/strong><\/h2>\n
\n<\/span><\/p>\n‘Bitcoin-First, Bitcoin-Only’ Approach<\/strong><\/h2>\n
\n<\/span><\/p>\nA screenshot of Metaplanet's press release.<\/pre>\n
Believing In The ‘Absolutely Scarce’ Asset<\/strong><\/h3>\n
\n<\/span><\/p>\n
\n<\/span><\/p>\nBitcoin is now trading at $62.896. Chart: TradingView<\/a><\/pre>\n
Following The Footsteps Of A Corporate Bitcoin Believer<\/strong><\/h3>\n