Coinspeaker Metaplanet to Secure $6.8M Loan for More Bitcoin Acquisition
Japan-based investment firm Metaplanet Inc appears undeterred by the crypto market situation and is therefore holding nothing back in its business of buying Bitcoin (BTC). Holding to its rigid view of the long-term value of the cryptocurrency, the Tokyo-listed firm has again made another surprising move by deciding to take a loan of 1 billion yen ($6.8 million), with a 0.1% annual interest rate.
According to the Thursday announcement, Metaplanet’s board of directors reached the decision as the firm remains bullish on Bitcoin.
The firm is intent on using nearly the entire loan amount to purchase Bitcoin, it said in a statement, which reads partly:
“Our basic policy is to hold Bitcoin BTC long-term; however, if we utilize Bitcoin for operations, the applicable Bitcoin balance will be recorded as a current asset on the balance sheet.”
Metaplanet Continues to Bet Big on Bitcoin
Notably, this loan report comes after an earlier announcement by the company. On Tuesday, Metaplanet announced a 10.08 billion yen ($68.4 million) Gratis Allotment of Stock Acquisition Rights. This process would see the company allocate shares to the shareholders who have applied for them.
Usually, when a company issues new shares, it invites applications from the public or existing shareholders. Once all applications are in, the company then processes them and decides on how to allot the shares.
According to Metaplanet, though, the majority of the proceeds from this exercise will also be used to fund additional purchases of Bitcoin.
It goes without saying that Metaplanet continues to see its Bitcoin acquisitions as an integral part of its long-term growth strategy. The Japanese firm says it firmly believes that holding Bitcoin will not only improve its profitability over time but also contribute immensely to the growth of its corporate value as well.
Shift in Strategy
Notably, there is a brief history behind Metaplanet’s Bitcoin acquisitions. The company first announced in May that it was shifting its focus to Bitcoin as a treasury reserve asset. At the time, it cited the horrible state of the Japanese economy, government debts, and the weak yen, as what informed the decision it was making.
Since then, the company has gone on to make very large BTC purchases, earning itself the alias ‘Japan’s MicroStrategy’ in the process. This comparison comes from its move that mimics the high-profile Bitcoin accumulation of American firm MicroStrategy. While MicroStrategy remains the world’s largest corporate holder of Bitcoin, with 226,500 BTC as of the last report, Metaplanet also looks to be on its way up with its aggressive strategy.
Metaplanet’s stock closed up 20.19% on Thursday after the Japan stock market saw its worst day since 1987 on Monday with the Nikkei 225 index plunging 12.4%. The Nikkei index closed down 0.74% today.
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Metaplanet to Secure $6.8M Loan for More Bitcoin Acquisition
