Metaplanet Inc to issue 1 billion yen in bonds to buy Bitcoin
Metaplanet Inc., a Tokyo-based investment firm, has revealed its intention to issue 1 billion yen ($6.26 million) in bonds to acquire more Bitcoin. This decision, which was approved by the company’s board of directors on June 24, 2024, is part of Metaplanet’s long-term investment strategy to increase its cryptocurrency reserves.
Currently, Metaplanet holds 141.07 Bitcoin and is aiming to significantly expand its digital asset holdings. If the purchase goes through at current market rates, the company’s total Bitcoin reserves would rise to approximately 241 BTC, valued at around $15 million.
In May 2024, Metaplanet adopted a “Bitcoin-first, Bitcoin-only approach” to its treasury management in response to economic challenges in Japan, including high government debt, negative real interest rates, and a weakened yen.
The bonds, scheduled to be issued on June 26, 2024, will carry an annual interest rate of 0.5% and mature on June 25, 2025. Metaplanet has confirmed that the funds raised from this bond issuance will be used exclusively to purchase Bitcoin.
This announcement has had a significant impact on Metaplanet’s stock performance, with shares surging 11.5% on Monday to trade at 96 yen ($0.60) per share. This continues the company’s impressive growth trend, with its stock price having risen by over 500% since the beginning of 2024.
Metaplanet’s strategy of investing in Bitcoin has drawn comparisons to that of MicroStrategy, a U.S.-based software company known for its substantial Bitcoin reserves. However, while MicroStrategy holds 214,400 BTC valued at approximately $13.4 billion, Metaplanet’s Bitcoin holdings are relatively smaller.
Metaplanet’s Bitcoin purchases have been made in stages, with the average purchasing price standing at 10.28 million yen (about $65,365) per Bitcoin. Despite the recent market downturn, with Bitcoin trading at around $62,733 as of June 24, Metaplanet remains committed to its long-term investment strategy.
This move by Metaplanet reflects a broader trend among corporations to diversify their treasury holdings with digital assets. It also underscores the increasing acceptance of Bitcoin as a treasury reserve asset. By issuing bonds to fund Bitcoin purchases, Metaplanet is using traditional financial instruments to gain exposure to the cryptocurrency market.
