Why are Japanese corporate giants like Sony and Metaplanet making high-profile moves into the crypto space?
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Why are Japanese corporate giants like Sony and Metaplanet making high-profile moves into the crypto space?
Sony and Metaplanet's moves indicate growing adoption of crypto assets in Japan.
Navigating Web3 tides with focused insightsSource: beincrypto
Compiled by: Blockchain Knight
Sony and Metaplanet, two Japanese giants, have strengthened their positions in crypto assets in 2024 as Japan grapples with its declining currency.
Crypto asset adoption in Japan is rising, with companies entering the space to offer alternative options for customers.
Sony entered the crypto asset arena by acquiring Amber Japan, a digital asset trading service provider, at a valuation of $103 billion.
According to the announcement, the company will be renamed S.BLOX.
Amber Japan operates the "WhaleFin" crypto asset trading platform. This acquisition will enable the app to provide more user-friendly services along with additional supported currencies and features. WhaleFin confirmed this development in its Monday announcement.
The announcement stated: "Looking ahead, as part of the Sony Group, we will strive to create new added value in crypto asset trading services through collaboration with the group's diverse businesses."
On the other hand, Amber Japan has been facing financial difficulties since the collapse of FTX in 2022. Prior to Sony Group expressing interest in acquisition, its parent company, Amber Group, had to conduct a debt-to-equity swap transaction with Fenbushi Capital.
In addition, it has been reported that investment firm Metaplanet has also taken similar actions.
On Monday this week, Metaplanet increased its BTC holdings by $1.02 million, making it Japan's largest corporate holder of BTC.
Like MicroStrategy, Metaplanet has been gradually increasing its BTC holdings since April 2024.
Metaplanet disclosed on June 11 that it purchased $1.6 million worth of BTC and committed to purchasing an additional $6 million from bond issuance proceeds on June 24.
Reports indicate that the company's core policy is long-term holding of BTC.
The report mentioned the company's commitment to reducing exposure to the yen (Japan's domestic currency), and it also hopes to provide Japanese investors access to crypto assets through favorable tax structures.
The moves by Sony and Metaplanet signal growing adoption of crypto assets in Japan. Meanwhile, Japanese officials are concerned about currency depreciation.
Japan's crypto asset landscape has undergone significant changes due to the sharp depreciation of the yen and certain monetary policies implemented by the Bank of Japan (BOJ).
According to a Reuters report on June 27, Japan's Finance Minister Shunichi Suzuki and Chief Cabinet Secretary Yoshimasa Hayashi expressed concerns over the yen's steep decline.
Shinichi Uchida, Deputy Governor of the Bank of Japan, also stated: "Yen weakness is one of the factors pushing up inflation, so we will closely monitor exchange rate movements when guiding monetary policy."
Stable and moderate currency fluctuations are manageable, but one-sided rapid movements often affect the national economy.
When a currency depreciates, investors may seek alternative assets to protect their wealth or pursue higher returns. In such cases, some investors may turn to BTC as a store of value.
For example, Metaplanet stated that it holds BTC as a reserve asset to reduce risks arising from Japan's debt burden and resulting yen volatility.
Under similar circumstances, as the dollar weakened ahead of this week's key employment report, MicroStrategy founder Michael Saylor issued a bullish call for BTC—sell dollars, buy BTC.
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