Tokyo based company Metaplanet has announced a new step in its Metaplanet Bitcoin Strategy. The firm will invest about $25 million to support businesses that build services around Bitcoin.
The company board approved the creation of two new units. These include Metaplanet Ventures and Metaplanet Asset Management. The move shows that the company wants to do more than simply buy and hold Bitcoin. The focus now shifts to building the wider Bitcoin infrastructure.
Metaplanet plans to invest nearly $25 million, or about ¥4 billion, during the next two to three years. The money will go to companies working in the Bitcoin space. These businesses build tools for lending, payments, custody, trading, and compliance.
The company will also support new startups. Metaplanet Ventures will invest in early stage and growing companies. The firm also plans to start an incubator program for Japanese founders building Bitcoin related projects. Grants will also go to developers and educators working on open source Bitcoin technology.
Metaplanet CEO Simon Gerovich said Japan already has a strong system of rules for digital assets. According to him, the next step requires more builders and companies that can develop useful products.
Some experts believe the move may encourage more innovation in Japan. Musheer Ahmed from Finstep Asia said the investment size remains small compared with the country’s market. Still, the plan could motivate local startups to build new blockchain services.
Metaplanet already holds a large amount of Bitcoin. The company owns about 35,102 BTC. At recent prices, this amount is worth around $2.4 billion.
The firm spent close to $3.8 billion to build this Bitcoin reserve. The average purchase price stands near $107,000 per coin. Current market prices remain lower than that level. This leaves the company with a large paper loss.
The company recently reported a yearly loss of about $605 million. Revenue during the same period reached around $58 million. Most of the loss came from the drop in Bitcoin value during the last quarter.
The company stock has also fallen. Shares dropped about 3.25% to around ¥357. Over the last six months, the stock has lost more than 60% of its value.
Despite the challenges, the company continues to expand its Bitcoin investment plans. The first deal from Metaplanet Ventures already appears in progress. The firm plans to invest up to $2.6 million in JPYC Inc.
JPYC runs Japan’s first licensed yen stablecoin. The stablecoin mainly uses Japanese government bonds as backing.
Metaplanet has also started Metaplanet Asset Management in Miami. The platform will connect Asian and Western markets. The service will focus on digital asset credit, yield products, and derivatives linked to Bitcoin.
Experts believe the new strategy may reduce the company’s heavy dependence on Bitcoin prices. Investments in services and startups may create new income sources.
Through this plan, Metaplanet aims to help build stronger Bitcoin infrastructure in Japan while continuing its long-term Metaplanet Bitcoin Strategy.
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