Japanese investment firm Metaplanet Inc. experienced a notable increase in its stock price, surging over 12% on Monday morning.
This uptick followed the company’s board of directors’ announcement to purchase bitcoin worth 1 billion yen ($6.26 million) using capital raised through an upcoming bond issuance. According to data from Google Finance, the firm’s stock surged approximately 12.2% during the morning session.
Metaplanet Inc. plans to finance the Bitcoin acquisition by issuing the second series of ordinary bonds with guarantees. These bonds, totaling 1 billion yen, will carry an annual interest rate of 0.5% and are set to mature on June 25, 2025. The payment date for these bonds is June 26, 2024. In a separate announcement, the company confirmed that the funds raised from this bond issuance would be allocated to purchasing bitcoin.
Recent Bitcoin Acquisitions
Earlier this month, Metaplanet Inc. made a similar investment, purchasing 250 million yen of bitcoin. On June 11, the firm reported holding approximately 141.07 BTC. Data from Bitcointreasuries.net indicates that Metaplanet has been steadily increasing its bitcoin holdings, with previous purchases on April 23, May 10, and June 11.
Metaplanet Inc.’s decision to adopt Bitcoin as a strategic treasury reserve asset aligns with its response to ongoing economic challenges in Japan. The company cited high government debt levels, prolonged periods of negative real interest rates, and a weakened yen as factors influencing this strategic shift.
“The move is a direct response to sustained economic pressures in Japan,” the company stated.
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