Metaplanet Buys More Bitcoin Amid Japanese Yen Carry Trade Risks

Japan’s public-listed firm Metaplanet recently announced its fresh Bitcoin purchase worth 300 million Japanese Yen. The firm has been on a Bitcoin buying spree in the last three months, thereby taking its total Bitcoin holdings to more than 398.8 following today’s acquisition.

Interestingly, this purchase comes when the fears of the unwinding of the Japanese Yen carry trade continue to persist.

Metaplanet Adds 38 Bitcoins to Its Kitty

Japan’s MicroStrategy Metaplanet purchased 38 Bitcoin worth 300 million Japanese Yen earlier today as per the document submitted to its financial regulator. with this, its total investments in Bitcoin have shot up to 3.75 billion Japanese Yen.

Adopting the playbook from US-based business intelligence firm MicroStrategy (NASDAQ: MSTR), Metaplanet has been adding Bitcoins to its balance sheet.

A day before the company also announced its plans for the 11 series of its stock acquisition rights in order to add more BTC. On September 9, the Metaplanet management shared the related guidelines and delivery details for the stock acquisition. The data on the delivery of shares will happen around September 18, very close to the FOMC meeting and the expected Fed rate cut decision.

“The company also announces the full amount of the exercise price corresponding to the number of warrants exercised has been received by today. The funds received will be used to purchase Bitcoin,” noted the firm.

Earlier in June this year, the Japanese firms also conducted $7 million in bond sales to buy Bitcoins.

The recent purchase comes at a time when there has been growing speculation over the Bitcoin price trajectory amid the macro uncertainty in the market. Last week, Metaplanet entered into a strategic partnership with Ripple partner SBI VC in order to promote Bitcoin management.

Japanese Yen Carry Trade Unwinding Ahead?

In a recent note, Morgan Stanley’s Michael Wilson said that a further unwinding of yen-funded carry trades is possible if the US Federal Reserve announces a jumbo rate cut of 50 bps. this puts the US equities and other risk-ON assets at a greater risk of falling further. He wrote:

“The yen carry-trade unwind may still be a risk factor behind the scenes. A quick drop in US front-end rates could cause the yen to strengthen further, thus eliciting an adverse reaction in US risk assets.”

The last time, the Yen carry trade unwinding happened this July, US equities along with Bitcoin and the crypto market witnessed one of the biggest single-day falls triggering a Black Monday.

Thus, while many have been optimistic about the upcoming rate cuts, things could actually prove to be otherwise.

Currently, the Bitcoin (BTC) price is showing strength gaining over 4% in the last 24 hours and surging all the way to $57,000. The broader market is looking with optimism ahead of the release of US CPI data for August and the FOMC meeting next week.

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