Sony, Metaplanet Turn to Crypto Amid Yen Fall Warnings

4 months ago 55

Sony and Metaplanet, two giants in Japan, have fastened their grip on crypto in 2024. This comes as the country battles with a dwindling currency and government officials issue warnings.

Cryptocurrency adoption in Japan is growing, with firms venturing into the space to offer alternative options for customers.

Sony and Metaplanet Advance on Crypto

With a $103 billion valuation, Sony has forayed into the crypto scene by acquiring digital asset trading services provider Amber Japan. According to a press release, the firm will change its name to S.BLOX.

Amber Japan operates the “WhaleFin” cryptocurrency trading service. The acquisition will provide an easier-to-use service and deliver more supported currencies and functions for the app. WhaleFin confirmed the development in a Monday announcement.

“Going forward, as a member of the Sony Group, we will work to create new added value in cryptocurrency trading services by collaborating with the group’s diverse businesses,” reads the release.

In hindsight, Amber Japan experienced financial troubles ever since the collapse of FTX in 2022. Its parent company, Amber Group, had to undergo a debt-to-equity transaction with Fenbushi Capital before Sony Group expressed interest. Sony leverages partnerships and acquisitions to enhance its venture into Web3. This new deal marks its foray into the crypto scene.

As a Japanese multi-industry conglomerate, Sony is not alone. Reports indicate that investment firm Metaplanet is also advancing its status in the crypto industry.

By adding 20.195 BTC worth $1.02 million on Monday, Metaplanet becomes Japan’s biggest corporate holder of Bitcoin. Like MicroStrategy, Metaplanet has progressively increased its Bitcoin coffers since April 2024. It disclosed a $1.6 million BTC purchase on June 11 and committed to $6 million more on June 24 sought from bond issuance.

Read more: Who Owns the Most Bitcoin in 2024?

Metaplanet buys $1.2 million worth of BTC

According to the report, the firm’s basic policy is to hold Bitcoin for the long term. The report cited its commitment to reduce exposure to Yen, Japan’s local currency. The firm also wants to offer Japanese investors access to crypto with a preferential tax structure.

Japan Pivots to Crypto as Japanese Yen Falls

Sony and Metaplanet’s moves point to growing crypto adoption in Japan. This comes at a time when the country’s officials are concerned about a falling currency. Amid the major devaluation of the Japanese Yen and some monetary policies by the Bank of Japan (BOJ), the crypto landscape in the country has changed significantly.

Reuters reported on June 27 that Japan’s Finance Minister Shunichi Suzuki and Chief Cabinet Secretary Yoshimasa Hayashi expressed concerns about sharp declines in the Yen.

“A weak yen is among factors that push up inflation, so we will closely watch the currency’s moves in guiding monetary policy,” BOJ Deputy Governor Shinichi Uchida said in a meeting.

Stable currency moves are manageable, but a rapid single-sided move tends to affect the country’s economy. When a currency’s value falls, investors may look for alternative assets to protect their wealth or seek higher returns. In this scenario, some investors may turn to Bitcoin as a store of value.

For example, Metaplanet said it made BTC a reserve asset to reduce its exposure to risk arising from Japan’s debt burden and the resulting volatility in the yen.

In the same scenario, as the US dollar slips lower ahead of the week’s key employment report, MicroStrategy founder Michael Saylor has issued a bullish urge on BTC. He says to sell the USD and buy Bitcoin. At the time of writing, Bitcoin price is trading at $62,813.

The post Sony, Metaplanet Turn to Crypto Amid Yen Fall Warnings appeared first on BeInCrypto.

Read Entire Article