Metaplanet invests $12 million in Bitcoin to protect against Japan’s economic instability.
The company adopts a debt financed Bitcoin strategy, inspired by MicroStrategy.
Metaplanet, a Japanese public company, is boldly increasing its Bitcoin holdings through a ¥1.75 billion (roughly $12 million) bond issuance. Becoming Asia’s second-largest corporate holder of Bitcoin and using this strategy to deal with economic challenges.
Metaplanet currently owns 1,018 BTC, worth about $92.18 million, making up 19% of the company’s market value. Since April 2024, Bitcoin has been Metaplanet’s main treasury reserve. The company started with an initial purchase of 117.7 BTC for $7.19 million, followed by further acquisitions funded by loans. Including $6.8 million from MMXX Ventures and a $10 million investment in October for 156 BTC.
This steady accumulation has led the company to surpass Canaan, a leading Bitcoin mining machine manufacturer.
*Metaplanet Issues ¥1.75 Billion in 1-year 0.36% Bonds, Proceeds to Fund Additional Purchases of $BTC* pic.twitter.com/Jv3IEylplA
— Metaplanet Inc. (@Metaplanet_JP) November 18, 2024
$12 Million Bond
Metaplanet is using Bitcoin to protect itself from Japan’s economic issues, including a weakening yen, high government debt, and low interest rates. With a fixed supply of 21 million coins, Bitcoin is seen as a hedge against inflation and a safer value store than traditional currency.
Metaplanet has raised ¥1.75 billion ($11.8 million) by issuing bonds at a low 0.36% interest rate, with the aim of purchasing more Bitcoin. The bonds were fully bought by EVO FUND, signaling strong investor support for this bold and risky strategy.
Metaplanet’s bond issuance is unsecured but backed by a first-priority mortgage on Hotel Royal Oak Gotanda, owned by its subsidiary Wen Tokyo Inc.
Inspired by MicroStrategy
The strategy closely follows MicroStrategy’s approach, where borrowing money to buy Bitcoin has become a key financial move. Metaplanet borrows money at a low interest rate of 0.36% to invest further in Bitcoin, making it the second largest corporate Bitcoin holder in Asia.
Metaplanet is investing heavily in Bitcoin to tackle economic challenges, despite Bitcoin’s price volatility. The company is making a bold statement about the future of digital finance in Japan.
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