According to filings tracked by BitcoinTreasuries.NET, the Japanese banking conglomerate now holds 606,629 shares of Strategy. The stake is valued at approximately $96.6 million.
This investment effectively functions as a high-yield Bitcoin proxy. The conservative trust bank is capable of gaining exposure to the asset class without having to deal with the various hurdles of holding spot cryptocurrency in Japan.
Japanese regulations make it difficult for banks to hold spot Bitcoin directly on their balance sheets due to high capital requirements and unrealized gains taxation.
SMTG’s crypto journey
SMTG is a traditional financial heavyweight that traces its roots back to 1924. However, it has managed to build one of the most progressive digital asset strategies in East Asia.
SMTG began its journey by digitizing securities. In 2021, the bank issued Japan’s first security tokens with the help of the Securitize blockchain platform.
The Japanese behemoth then made a major pivot to infrastructure. In May 2022, they signed a Memorandum of Understanding (MoU) with Bitbank, one of Japan’s largest crypto exchanges, to establish the Japan Digital Asset Trust (JADAT).
The new entity is capable of offering institutional-grade custody for Bitcoin, non-fungible tokens (NFTs) as well as public blockchain security tokens.