Key facts:
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The collaboration will support Bitcoin trading, storage and management services.
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The alliance seeks to enhance Metaplanet’s corporate strategy for capital financing.
Under the motto “Bitcoin first, Bitcoin only,” the Cryptocurrency division of Japanese financial giant SBI Holdings, SBI VC Trade, has partnered with investment firm Metaplanet, also known as the “MicroStrategy of Japan” for its digital currency buying strategy.
The objective of the alliance, as explained in a release published on September 2, is to boost Metaplanet’s bitcoin (BTC) holdings, for which the financial group will begin supporting transactionsstorage and operations with the cryptocurrency carried out by Metaplanet.
The collaboration is part of a joint effort that aims to foster institutional adoption of BTC in the Asian country, as well as involve key players in the Japanese industry in the corporate BTC accumulation strategy.
The plan of the “MicroStrategy of Japan” is for the association to make it easier for the firm to access to a compatible corporate custody serviceprioritizing tax efficiency and the potential to use bitcoin as collateral for further financing.
In that regard, Metaplanet CEO Simon Gerovich explained that the collaboration with SBI Group will initially offer Bitcoin trading and custody. An activity that “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.”
The idea is that later new announcements are made. This, depending on the impact on financial results or “material events arising from this association.”
SBI Holdings, also known as Strategic Business Innovator Group, is a Tokyo-based financial services group founded in 1999. Since then, it has created an Internet-based ecosystem with a wide range of financial services, including securities, banking and insurance.
SBI Holdings is one of Japan’s largest financial holding companies. Source: Wikipedia.
According to the statistics available, by March 2024 the total assets of the financial consortium amounted to approximately 27.2 trillion Japanese yen. A capital that places SBI Holdings among the largest financial conglomerates of the world, with online retail brokerage platforms, digital banking and retail foreign exchange playing a key role in Japan’s financial landscape.
The financial giant has shown its interest in the cryptocurrency ecosystem for several years. In November 2023 partnered with Circlethe company UDSC stablecoin issuerIn mid-August, SBI Digital Community subsidiary joined Ripple to drive XRP adoption and issue NFTs on the XRP Ledger. The company operates a validator node on the XRP Ledger.
In this way, it is noted on the list that they make up dozens of financial giants from around the world, offering services with the c currencyRead by Satoshi Nakamoto.
These include institutions such as Wells Fargo, PNC, BNY Mellon, US Bank, Société Générale, BTG Pactual and BNP Paribas; including European banks such as BBVA and Santander in Switzerland, Deutsche Bank in Germany, and N26 and Revolut in Spain.
A strategy that puts bitcoin first
Based on this background SBI Holdings was selected by Metaplanet for the management of its aggressive bitcoin buying strategyAs reported by CriptoNoticias, since last May the company adopted bitcoin as a strategic reserve asset treasury following the Michael Saylor model with MicroStrategy.
All these actions are part of a “strategic change in treasury management” and in “direct response” to the sustained economic pressures in Japan, characterized by high levels of public debt, long periods of negative interest rates and the weakness of the Japanese yen against other currencies.
As of August 20, 2024, Metaplanet already accumulated 360,368 bitcoinsvalued at approximately 3.45 billion yen (USD 25.6 million). Its recent purchase included 500 million yen (USD 3.7 million) worth of BTC, following a 1 billion yen (USD 7.4 million) loan acquisition.
Many of the operations of the firm, which is listed on the Tokyo Stock Exchange, are financed through the issuance of debt bonds. As noted by Metaplanet’s Board of Directors, your policy is hold BTC for the long term. Hence the motto of the partnership with SBI Holdings puts bitcoin in first place.
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