Convano’s Ambitious Bitcoin Acquisition Strategy
In a bold move, a Japanese nail salon chain, Convano, has entered the world of corporate Bitcoin investments. The Tokyo-listed company aims to spend approximately ¥434 billion ($3 billion) to acquire 21,000 BTC, which represents 0.1% of the total Bitcoin supply. This strategic move positions Convano among the largest Bitcoin-holding enterprises globally.
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The Strategic Three-Phase Plan of Convano
Convano has successfully raised ¥4.5 billion through corporate bonds, which has already funded the purchase of 365 BTC. Leading this initiative, Taiyo Azuma, the head of Convano’s Bitcoin Strategy Office, has outlined a clear roadmap: reaching 2,000 BTC by the end of 2025, 10,000 BTC by August 2026, and achieving the target of 21,000 BTC by March 2027.
Following this announcement, Convano’s stock has experienced a significant surge, climbing over 220% in the past month and an astounding 1,414% since the beginning of the year. Investors are increasingly viewing Convano’s stock as a direct avenue for gaining exposure to the cryptocurrency market, echoing trends observed in other public firms linked to crypto assets.
Yen Depreciation Fuels Crypto Shift
Convano’s shift to cryptocurrency is not merely motivated by market trends. According to Azuma, the continued weakening of the yen against the dollar has increased costs for wages and raw materials in Convano’s primary business operations. Over the last decade, the yen has depreciated by roughly 20%. Azuma argues that Bitcoin offers a safeguard as a stable store of value amid financial uncertainty.
Currently, Bitcoin (BTC) is trading at $108,513. Convano’s leadership believes that Bitcoin’s inherent volatility provides opportunities for strategic accumulation and portfolio growth. The company perceives Bitcoin price fluctuations as advantageous for expanding their holdings.
Experts Question Long-term Viability
However, not all experts are convinced of the sustainability of Convano’s strategy. Matthew Sigel, head of digital assets research at VanEck, cautions that such treasury strategies may be precarious. Sigel highlights that when the market value of company stocks surpasses the net worth of their Bitcoin holdings, issuing new shares often leads to price premiums. Conversely, if stock values decline closer to the actual Bitcoin value, it results in dilution, which he describes as “erosion” rather than capital formation.
Bitcoin Accumulation Trend in Japan
Convano is not alone in its Bitcoin acquisition endeavors. Other Japanese companies are also making significant strides in accumulating Bitcoin. Notably, Metaplanet, a company that transitioned from hotel operations, now holds nearly 19,000 BTC, ranking among the top 10 global Bitcoin holders. According to Bitcoin Treasuries, seven publicly traded Japanese firms are among the top 100 largest Bitcoin-holding companies worldwide.
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