Source: Blockchain Knight
In 2024, the Japanese giants Sony and Metaplanet have strengthened their control over Crypto assets due to Japan’s ongoing struggle with diminishing currency. The adoption of Crypto assets in Japan is on the rise, with businesses venturing into the field to offer alternative choices for customers.
Sony, with a valuation of $103 billion, acquired the digital asset trading service provider Amber Japan, stepping into the Crypto asset domain. The company will be renamed S.BLOX, as per the issued statement. Amber Japan operates the “WhaleFin” Crypto asset trading, and this acquisition aims to provide the application with user-friendly services, along with additional currency and features support. WhaleFin confirmed this progress in a statement on Monday.
The statement read: “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 diversified businesses.”
On the other hand, since the collapse of FTX in 2022, Amber Japan has been facing financial crises. Even before Sony Group showed interest in acquisition, its parent company, Amber Group, had to engage in debt-to-equity transactions with Fenbushi Capital.
Additionally, investment firm Metaplanet has taken similar actions. This Monday, Metaplanet increased its BTC holdings by $1.02 million, becoming the largest BTC corporate holder in Japan. Similar to MicroStrategy, Metaplanet has been gradually increasing its BTC holdings since April 2024.
Metaplanet disclosed its purchase of $1.6 million worth of BTC on June 11, and committed to repurchasing $6 million more from bond issuance on June 24. The company’s fundamental policy is to hold BTC for the long term. The report mentioned the company’s commitment to reducing exposure to the Japanese yen and its desire to provide Japanese investors with access to Crypto assets through a favorable tax structure.
The actions of Sony and Metaplanet indicate the increasing adoption of Crypto assets in Japan. Concurrently, Japanese officials are concerned about currency devaluation. The Crypto asset landscape in Japan has undergone significant changes amidst the sharp depreciation of the yen and certain currency policies of the Bank of Japan (BOJ).
According to a Reuters report on June 27, Japanese Finance Minister Shunichi Suzuki and Chief Cabinet Secretary Yoshimasa Hayashi expressed concerns about the abrupt fall in the yen. BOJ Deputy Governor Shinichi Uchida also stated, “The weak yen is one of the factors pushing up inflation, so we will closely monitor currency trends in guiding monetary policy.”
While manageable currency fluctuations are expected, unilateral rapid changes can often impact a country’s economy. When a currency depreciates, investors may seek alternative assets to protect their wealth or seek higher returns. In such scenarios, some investors may view BTC as a means of value storage.
For instance, Metaplanet has declared that it holds BTC as reserve assets to mitigate risks stemming from Japanese debt burdens and resultant yen fluctuations. In a similar vein, as the US dollar weakened ahead of this week’s crucial employment report, MicroStrategy founder Michael Saylor advocated for BTC, advising to sell dollars and buy BTC.