Sony and Metaplanet, two Japanese giants, have strengthened their control over crypto assets in 2024 as Japan struggles with a dwindling currency supply. The adoption of crypto assets in Japan is increasing, with businesses venturing into the field to provide alternative options for customers.
Sony entered the crypto asset space by acquiring digital asset trading service provider Amber Japan for an estimated $10.3 billion. The company will be renamed S.BLOX, according to a statement issued. Amber Japan operates the “WhaleFin” crypto asset exchange, and this acquisition will provide the application with more user-friendly services, as well as additional support for currencies and features. WhaleFin confirmed this development in a statement on Monday.
The statement read, “Looking ahead, as a member of the Sony Group, we will strive to create new added value in crypto asset trading services through collaboration with the group’s diversified business.”
On the other hand, Amber Japan has been facing financial difficulties since the closure of FTX in 2022. Even before Sony showed an inclination to acquire it, its parent company, Amber Group, had to engage in a debt-to-equity swap transaction with Fenbushi Capital.
Additionally, investment firm Metaplanet has reportedly taken similar action. This Monday, Metaplanet increased its investment in BTC, with a value of $1.02 million, becoming Japan’s largest BTC corporate holder. Like 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 purchasing an additional $6 million from bond issuances on June 24.
The report stated that the company’s fundamental policy is to hold BTC for the long term. It mentioned the company’s commitment to reducing exposure to the Japanese yen and its desire to provide Japanese investors with opportunities to access crypto assets through favorable tax structures.
The actions of Sony and Metaplanet indicate an increasing adoption of crypto assets in Japan. At the same time, Japanese officials are concerned about currency devaluation. The landscape of crypto assets in Japan has undergone significant changes due to the sharp depreciation of the yen and the impact of some monetary policies by the Bank of Japan (BOJ).
According to Reuters on June 27, Japanese Finance Minister Taro Aso and Chief Cabinet Secretary Katsunobu Kato expressed concerns about the yen’s sharp decline. 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 when guiding monetary policy.”
While controlled fluctuations in currency are manageable, one-sided rapid changes often affect the national economy. When a currency depreciates, investors may seek other assets to protect their wealth or seek higher returns. In this case, some investors may view BTC as a store of value.
For example, Metaplanet stated that it considers BTC as a reserve asset to reduce the risks associated with Japan’s debt burden and resulting yen volatility. In a similar situation, with the US dollar weakening ahead of the key employment report this week, MicroStrategy founder Michael Saylor issued a bullish call for BTC, urging selling the dollar and buying BTC.
