Japanese company Lib Work Co. has officially announced its intention to purchase 500 million yen, or approximately $3.4 million, worth of Bitcoin (BTC) by 2025. This decision is part of the company’s strategy to address inflation risks and pave the way for overseas expansion.
Japanese companies are turning to Bitcoin
Lib Work’s move joins a growing list of Japanese companies that have begun to hold Bitcoin on their balance sheets. Companies have traditionally been more familiar with traditional instruments, but digital assets are now seen as a new way to preserve wealth. Meanwhile, global uncertainty is driving many to seek more resilient alternatives.
Lib Work isn’t alone. Artificial intelligence-based technology company Quantum Solutions has previously announced an ambitious target of building reserves of up to 3,000 BTC within a year. If achieved, that amount would be equivalent to hundreds of millions of US dollars. Imagine a company that initially had nothing to do with finance now racing to hoard Bitcoin like it hoards gold.
Not only that, but Remixpoint and Metaplanet also started buying millions of dollars in Bitcoin last year. They believe that storing some of their assets in Bitcoin can act as a hedge against a weakening yen or a slowdown in the Japanese economy. So, you could say that Lib Work is simply following suit, although it’s still interesting, as the company is better known in the property sector.
Lib Work sees Bitcoin as shield against inflation risks
Lib Work’s rationale is quite simple: inflation is inevitable, currency values continue to erode, and global markets are becoming increasingly competitive. With Bitcoin, the company hopes to secure a long-term foothold that won’t be easily eroded by economic turmoil. Furthermore, this purchase is expected to trigger wider adoption in the Japanese corporate sector.
However, can Bitcoin truly be a savior during increasingly difficult economic times? The answer is certainly debatable. But given the increasing number of Japanese companies venturing in, this trend seems likely to continue.