Metaplanet Inc., a Japanese investment company, announced a major investment decision involving the purchase of Bitcoin (BTC) worth ¥1 billion, which is approximately $6.3 million. The company’s board of directors agreed unanimously to the proposal on Monday, June 24th. The company intends to use proceeds from its recent bond sale to complete the purchase.
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Metaplanet Inc. issued a separate announcement on the sale of the bonds, which will accrue an annual interest rate of 0.5%. The bond sale is set to raise ¥1 billion, and each bond will be valued at ¥50,000,000. The bond purchase date is scheduled for June 26th. The redemption and maturity date is set for June 25th, 2025.
Metaplanet is publicly listed on the Tokyo Stock Exchange with the ticker symbol 3350. The company’s stock price rallied significantly following the announcement, recording a 12.2% gain in the morning trading session.
Metaplanet to allocate funds to EVO FUND
The announcement also detailed that all the funds raised during this campaign will be allocated to the EVO FUND and ultimately used to purchase Bitcoin. According to the announcement, the bonds issued will be redeemable with a one-month notice before the maturity date. However, bond recall will not be possible in the first three months.
*Metaplanet directors authorize purchase of ¥1 billion of $BTC from bond proceeds* pic.twitter.com/4eZ6JfQ2cc
— Metaplanet Inc. (@Metaplanet_JP) June 24, 2024
Metaplanet is commonly dubbed “Asia’s Microstrategy” by the crypto community for replicating Microstrategy’s crypto acquisition plan. The company also announced that its BTC holdings will be recorded and evaluated according to the current market value of the digital asset.
“The balance of Bitcoin held will be recorded at cost for those intended for long-term holding that are exempt from end-of-term market assessment taxation. Other Bitcoin holdings will be evaluated at market value each quarter…”
Metaplanet
Metaplanet emphasized that the company’s objective is to hold Bitcoin for the long run. However, when the company uses part of its holding, the corresponding balance will be recorded on the balance sheet as current assets. Metaplanet has intensified its commitment to buying Bitcoin.
Metaplanet maintains its commitment to BTC
On June 11th, the firm purchased 23.351 BTC worth ¥250 million ($1.58 million), which cumulatively saw the firm hold $9.54 million worth of BTC, or 141.07 bitcoins. The purchase saw the stock surge by 9.88% and has so far surged by 37% in the past month. Bitcoin treasuries have ranked Metaplanet 30th among corporates with the largest BTC holdings worldwide.
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The Japanese firm affirmed that its Bitcoin agenda is a move to overcome the debt crisis in Japan and act as a safe haven against the declining value of the Japanese yen. The debt crisis cited by Metaplanet has driven the country into economic turmoil due to the negative interest rates offered by the banking sector.
Cryptopolitan reporting by Collins J. Okoth