Metaplanet had plans to raise $70 million but took a $6.8 million loan from its shareholder.
MMXX Ventures charged 0.1% APR interest, initiating a six-month tenure from Aug 8.
Presently, Metaplanet has 246 BTC – worth $13.95 million at current market price.
In the wake of revealing plans to raise $70 million, Metaplanet has procured a loan of about 1 billion yen, shocking the crypto world. Metaplanet, a Japanese investment firm was planning to gain amount via stock rights offering. However, it took a loan of about $6.8 million from MMXX Ventures – one of its shareholders – to buy more Bitcoin.
MMXX Ventures charged the six-month loan term, initiating from August 8, 2024, with 0.1% APR to Metaplanet. Sharing the official statement on their X platform, Metaplanet has revealed all factors of the loan, including the fact that the repayment method would be paid back in lump-sum. This move raised eyebrows, as Metaplanet had plans to allocate $58 million from the $70 million to Bitcoin investments.
Critics state that if the entire $6.8 million is invested, Metaplanet would be able to procure an additional 118.5 Bitcoin, ranging at $57,337 in the current market price. Metaplanet emphasized that it will adopt an “entire range of capital market instruments” to reinforce its Bitcoin reserves, similar to MicroStrategy’s playbook. This strategy was undertaken to curb Japan’s burden of debt and to control the fast-depreciating value of the Japanese yen.
Metaplanet Inc. Invests ¥1 Billion in Bitcoin through New Bond Issuance
“Before this, Metaplanet was a textbook “zombie” company,” said Simon Gerovich, the CEO of Metaplanet, at the Bitcoin 2024 conference in late July. He recalled struggling to clean up Metaplanet’s balance sheet and pay down debt before realizing that Bitcoin — the apex monetary asset — could put the company in a better position to succeed in the long term.
So far, Metaplanet has nearly 246 Bitcoins from seven separate purchases, whose net worth would be around $13.95 million, based on the current market value. Also, considering its average purchase price at $65,145 million, the firm has encountered a bear fall since its first Bitcoin investment on April 23, implying it has declined by 12.8%.
Google Finance data portrays the company’s stock price has risen to 290% since it announced its Bitcoin plan on April 9, trading at $4.39 (643 Japanese yen). However, it declined from its year-high of $20.50 (3,000 Japanese yen), recorded on July 24. This fall was further aggravated by “Black Monday” on August 5, which saw Bitcoin’s drastic 10% fall in a short two-hour window.
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