TL;DR
Metaplanet Inc. issues third series of secured ordinary bonds for ¥1,750,000,000.
The funds raised will be used to purchase Bitcoin.
The guarantee is backed by Simon Gerovich, the company’s representative director, and a property of the subsidiary Wen Tokyo Inc.
Metaplanet Inc. has announced the issuance of the third series of ordinary secured bonds for a total amount of ¥1,750,000,000.
The resolution was taken at a meeting of the board of directors held on November 18, 2024, and the bonds will be acquired by EVO FUND.
The interest rate on these bonds is 0.36% per annum, and will be paid in full upon maturity on November 17, 2025.
The funds raised will be used specifically for the purchase of Bitcoin, in line with the company’s strategy to strengthen its position in the cryptocurrency market.
This information comes from an official statement issued by the company itself.
The bonds have a face value of ¥43,750,000 per unit, with a payment date of the issue set for November 18, 2024.
The Company has secured performance of the obligations under these bonds through a personal guarantee from Simon Gerovich, who also serves as a representative director of Metaplanet Inc.
In addition, a first-lien mortgage has been established on the property of Hotel Royal Oak Gotanda, an asset of subsidiary Wen Tokyo Inc., to secure financial obligations incurred.
The issuance of these bonds aims to increase funds for the purchase of Bitcoin, a strategic step in the diversification of Metaplanet Inc. investments in the cryptocurrency sector.
The company is betting on greater exposure to digital assets, reflecting its long-term view in this volatile market.
However, according to the statement, this issuance is not expected to have a significant impact on Metaplanet Inc. consolidated financial results for fiscal year 2024.
Impact and future of the issue
Although the company does not expect this bond issuance to significantly impact its financial results for fiscal year 2024, the Bitcoin acquisition could have long-term implications depending on the evolution of cryptocurrency prices.
While the use of the funds is clearly geared towards strengthening its digital asset portfolio, it is important to note that cryptocurrency markets remain highly volatile, which could impact investment performance.
Metaplanet Inc. has not disclosed further details on the exact amount of Bitcoin it will acquire with the funds raised, but the choice to fund itself through bonds indicates a leverage strategy to take advantage of market opportunities without compromising its liquidity in the short term.
This approach could allow the company to more efficiently manage the risks associated with fluctuations in digital assets while maintaining normal operations.
The fact that the bonds are fully guaranteed by Representative Director Simon Gerovich adds a level of confidence to investors, who will likely value the security that this guarantee offers.
Moreover, the existence of additional collateral, such as Wen Tokyo Inc. real estate, provides an extra layer of protection for the bonds, which may make the offer more attractive to potential buyers.
The issuance of these bonds is a clear sign of Metaplanet Inc.’s proactive strategy to increase its exposure to the Bitcoin market, while managing its risks in a controlled manner.
