- In order to acquire additional BTC, Metaplanet takes advantage of the Japanese yen carry.
- Bitcoin whale purchasing increased dramatically amid this week’s market meltdown.
A further loan of 1 billion Japanese Yen was secured earlier today by the publicly-listed Japanese corporation Metaplanet, further solidifying its Bitcoin acquisition strategy. The announcement of the $68 million stock rights offering for the purchase of BTC came the day before this action.
Raising an extra 1 billion Japanese yen at a mere 0.1% APR, Japanese investment firm MicroStrategy seems to be engaging in a brazen Bitcoin purchasing binge. As previously stated, the company will be investing all of the money into purchasing Bitcoin. When it comes to their Bitcoin purchase, the Japanese corporation is obviously following MicroStrategy’s lead.
Yen Carry Trade
In order to acquire additional assets, Metaplanet takes advantage of the Japanese yen carry, which entails buying yen at a reduced cost. In response to last week’s rate rise decision by the Bank of Japan, the Yen carry trade was unwound, sending global markets into a tailspin early on Monday, August 5.
This led to large liquidations in the cryptocurrency market as well. Before regaining 15% to over $57,000 in the last two days, the price of Bitcoin fell below $50,000.
But if world markets don’t stabilize soon, the governor of the Bank of Japan suggested they could think about postponing the rate rise. For the markets as a whole, this may serve as a further impetus going forward.
Bitcoin whale purchasing increased dramatically amid this week’s market meltdown, according to on-chain statistics. Santiment, a blockchain analytics business, reports that on August 5th and 6th, Bitcoin whale transactions spiked, with whale wallets containing 10 to 1,000 BTC. As soon as the price dropped below $50,000, whales began to quickly accumulate.
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