Japan’s ‘MicroStrategy’ Teams Up with SBI for Bitcoin Trading and Storage

Metaplanet, a Tokyo-listed firm often referred to as “Asia’s MicroStrategy,” has formed a strategic collaboration with SBI VC Trade, a subsidiary of Japan’s financial giant SBI Holdings, Ripple’s key partner, said the firm in an announcement.

The partnership aims to provide support for Bitcoin trading, storage, and operation. Crypto investors in Japan will have more tools as a result.

Metaplanet said the partnership is part of its ongoing efforts to work with industry leaders in Japan who back the firm’s Bitcoin accumulation strategy.

Japan’s Market Grows

The partnership is also expected to boost Metaplanet’s financial agility as its Bitcoin treasury expands, while supporting ongoing equity and debt financing efforts. The firm added that this collaboration aligns with its objective of becoming a modern financial service provider.

“A key element of this partnership is access to a compliant corporate custody service that prioritizes tax efficiency and offers the potential to utilize Bitcoin as collateral for financing,” Metaplanet noted.

In a separate statement, SBI said the partnership will provide Metaplanet with a comprehensive suite of services to manage and grow its Bitcoin holdings.

SBI Group offers its expertise and infrastructure to assist Metaplanet in trading and storing Bitcoin. In addition, its tax exemption service can help Metaplanet reduce its tax liability on unrealized gains from its Bitcoin holdings.

Open Development Culture

SBI Holdings, through its subsidiary, has expanded its footprint into the digital asset sector through collaborative relationships with fintech leaders, including Ripple.

The two entities have established SBI Ripple Asia, a joint venture focusing on providing financial institutions and money transfer operators in Japan, South Korea, and Southeast Asia with access to RippleNet.

Earlier in April, Ripple and SBI Ripple Asia announced a strategic partnership with HashKey DX to introduce XRP Ledger (XRPL)-powered supply chain finance solutions in Japan. Using blockchain technology for enterprise applications, the initiative aims to improve efficiency and reduce costs associated with supply chain financing.

Metaplanet has recently joined a number of major companies like MicroStrategy and Tesla to add Bitcoin to its holdings. The company’s Bitcoin strategy is inspired by MicroStrategy’s Bitcoin playbook.

Having purchased Bitcoin since 2020, MicroStrategy now has over 226,000 BTC. The firm is currently the largest corporate holder of Bitcoin in the world, with its holdings representing approximately 1% of the total Bitcoin supply.

Metaplanet has steadily acquired more BTC over the past few months, boosting its total holdings to approximately 360.4 BTC, worth approximately 3.5 billion yen at current prices ($23 million).

A Big Bet

Like MicroStrategy, Metaplanet’s consistent Bitcoin purchases have been funded through various means, including equity and debt offerings, which have allowed it to expand its Bitcoin reserves.

The announcement of SBI and Metaplanet comes amid the ongoing struggling crypto market, with Bitcoin hovering around $59,000, per CoinGecko’s data. The flagship cryptocurrency just ended August in red, registering around 5% loss over the past month.

Bitcoin is currently changing hands at around $59,200, up about 3% in the last 24 hours. It is now facing the key $60,000 level.

All eyes are on the Fed’s interest rate decision this month. Following several Fed agents’ speeches in recent months, economists and market observers expect the Fed to start cutting rates in September.

According to a new report from Bitfinex, the Fed’s coming decision could largely influence Bitcoin’s price performance. Bitfinex analysts suggest that a 25 basis point reduction might lead to a temporary sell-off in Bitcoin but a steady upward trend will follow.

On the other hand, analysts think a cut of 50 basis points could trigger a sharp rise and subsequent price correction.

Analysts also predict a potential price bottom for Bitcoin between $40,000 and $50,000, following the rate cut. The forecast is based on historical data and patterns observed in previous cycles.