Japanese investment firm Metaplanet Inc. has announced a strategic partnership with SBI VC Trade, a subsidiary of the financial services giant SBI Group, to bolster its bitcoin strategy.
This collaboration marks a significant step in Metaplanet’s efforts to establish itself as a major player in the global bitcoin market.
Metaplanet, often referred to as “Asia’s MicroStrategy” due to its aggressive acquisition of bitcoin, is working closely with SBI VC Trade to enhance its capabilities in bitcoin trading, storage, and management.
This partnership, announced on September 2, 2024, aligns with the company’s broader strategy to engage with leading industry stakeholders in Japan and further its corporate bitcoin accumulation efforts.
The deal will enable Metaplanet to utilize SBI Group’s advanced custodial services, which are designed to prioritize tax efficiency and allow the use of bitcoin as collateral for financing.
“This collaboration is part of our ongoing effort to engage with leading industry stakeholders in Japan who support our corporate Bitcoin accumulation strategy,” Metaplanet stated in its official announcement. It added:
“As our treasury expands, we continue to evaluate various tools and strategies that could enhance our financial flexibility. Any impact on financials or material events arising from this partnership will be announced accordingly.”
SBI VC Trade, a fully licensed digital asset exchange regulated by Japan’s Financial Services Agency, will provide Metaplanet with a range of services, including trading, storage, and management solutions.
The partnership will help Metaplanet enhance its compliance framework while exploring new opportunities for equity and debt financing.
Simon Gerovich, CEO of Metaplanet, expressed his enthusiasm about the collaboration, stating:
“It aligns with our vision of a modern financial services provider and adds flexibility to our corporate strategy, complementing our ongoing efforts in equity and debt financing.”
This partnership also reflects Metaplanet’s “bitcoin First, bitcoin Only” strategy, which focuses on using bitcoin as a primary reserve asset.
The company has already accumulated 360.4 bitcoin, worth approximately $20.7 million, as of September 2024. With this partnership, Metaplanet aims to leverage bitcoin’s scarcity and non-political monetary policy to enhance its financial position.
Metaplanet’s collaboration with SBI Group reflects its growing focus on bitcoin. In April 2024, Metaplanet revealed it had included BTC as a key treasury asset, investing 1 billion Japanese yen to acquire bitcoin as part of its strategic shift.
For SBI Group Holdings, this partnership represents another strategic move to expand its bitcoin trading and Web3-focused businesses. SBI Holdings has been actively involved in this sector, forming partnerships with other companies and launching various blockchain initiatives.
The company’s subsidiary, SBI VC Trade, has emerged as a critical player in Japan’s bitcoin market, offering services such as spot and margin trading and a compliant corporate custody service.
SBI VC Trade’s collaboration with Metaplanet is a continuation of its strategy to strengthen ties with key industry players and support the growth of the bitcoin ecosystem in Japan.
“Focused on Bitcoin’s rarity and non-political monetary policy, Metaplanet appointed Bitcoin as a major financial asset and advanced Bitcoin’s accumulation through both debt and equity financing,” SBI Group stated.
Metaplanet’s move to deepen its bitcoin strategy comes amid economic challenges in Japan, including the depreciation of the yen and low-interest rates. The firm views bitcoin as a hedge against inflation and currency devaluation, referring to it as a “digital form of gold.”
This strategic pivot towards bitcoin mirrors the approach of MicroStrategy, a U.S.-based company that has made significant investments in bitcoin and is the largest corporate holder of the digital asset.
This aggressive accumulation strategy has not only earned Metaplanet the nickname “Asia’s MicroStrategy,” but has also contributed to substantial growth in its stock value, which has surged by over 662% this year.
It’s worth mentioning that in February, Japan’s government permitted investment firms to directly hold digital assets, enabling Metaplanet to start acquiring bitcoin.
As Metaplanet’s bitcoin holdings continue to grow, the firm is also exploring innovative ways to increase its financial flexibility. This includes plans to tokenize its shares on the Bitcoin layer-2 network, Liquid, making them more accessible to international investors.
The partnership with SBI Group is expected to bring several benefits, including access to leveraged trading with real margin, allowing Metaplanet to use bitcoin as collateral.
Additionally, Metaplanet will benefit from an “Exclusion Service for End-of-Period Valuation Taxation,” a new tax-related service introduced by SBI Group that excludes corporate taxes on digital asset gains.
The collaboration between Metaplanet and SBI Group is poised to have a significant impact on Japan’s Bitcoin landscape. Both companies are committed to promoting blockchain technology and expanding the use of digital assets in various sectors.
Metaplanet assured stakeholders that, any major financial effects or key developments resulting from this partnership will be reported.
