Metaplanet, a Japanese early-stage investment firm, has informed the public that it will be purchasing Bitcoin worth 1 billion Yen (approximately $6.3 million). According to the announcement, the capital used for the purchase will be obtained from an upcoming bond sale scheduled to take place on June 26.
The announcement comes amid a global crypto market downtrend that has seen about 2.76% wiped out of the total market cap as of Monday, June 24. Consequently, the firm will be buying into Bitcoin at a discounted rate ahead of a potential bull market. Interestingly, Metaplanet stock price jumped by 12% following the announcement from its board of directors.
Metaplanet to Acquire Bitcoin Using Proceeds From Bonds Offering
The investment giant company stated on Monday that it has resolved to increase its Bitcoin holdings by adding another $6.3 billion worth of the asset to its portfolio. Metaplanet disclosed that the capital raised from the sale of the second series of ordinary bonds will be allocated towards this purpose.
Source: Metaplanet/X
In a separate statement, Metaplanet revealed that the total amount of bonds equaling 1 billion Yen will come with an annual interest rate of 0.5%. The payment date starts on June 26 and will mature on June 25, 2025. Each bond will be sold at 50 million Yen and the redemption amount will be 100 Yen per bond for each 100 Yen of the bond amount.
Metaplanet Eyes Long-term Investment
Meanwhile, the investment firm said that it plans to hold Bitcoin long-term, and the coins purchased will be recorded at their acquisition cost. These holdings will not be taxed as per the end-of-term market value assessment.
“The balance of Bitcoin held will be recorded at cost for those intended for long-term holding that is exempt from end-of-term market value assessment taxation,” the statement reads.
Additionally, Metaplanet said that other BTC holdings will be assessed at market value each quarter of the year. The gains and losses realized will be recorded under “non-operating income or expenses” in their income statement report.
Recall that Metaplanet had previously purchased about 250 million Yen ($1.6 million) worth of Bitcoin earlier this month. Also, the company acquired Bitcoin on April 23, May 10, and June 11. According to data from Bitcointreasuries.net, the company now holds a total of 240 BTC (valued at $15 million).
The recent investment in Bitcoin is part of its broader strategy of adopting the asset as a strategic treasury reserve asset, as disclosed in an announcement in May. Ultimately, Metaplanet now becomes the 30th largest Bitcoin corporate holder in the world.
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