• Japan’s Metaplanet issues ¥1 billion in bonds at 0.5% interest to purchase Bitcoin, boosting its cryptocurrency holdings.

  • The bond issuance, guaranteed by CEO Simon Gerovich, aims to fund Metaplanet’s long-term Bitcoin acquisition strategy.

  • Metaplanet holds 141.0727 Bitcoins, valued at ¥1.45 billion, recording long-term assets at cost and short-term at market value.

Metaplanet, a Japanese firm, has announced that it’s expanding its Bitcoin portfolio by issuing ¥1 billion in 0.5% bonds. This decision, made during today’s Board of Directors meeting, will see the raised capital allocated for the purchase of Bitcoin.

JUST IN: Japanese public company Metaplanet issues ¥1 billion in 0.5% bonds to buy more #Bitcoin pic.twitter.com/jC7gaJ95Z3

— Bitcoin Magazine (@BitcoinMagazine) June 24, 2024

Details of the Bond Issuance

Metaplanet’s latest bond issuance, classified as the second series of ordinary bonds with guarantees, aims to raise ¥1 billion. Each bond is valued at ¥50,000,000, with an annual interest rate of 0.5%. The bonds are set for payment on June 26, 2024, and will mature on June 25, 2025. Redemption will occur at ¥100 per bond for each ¥100 of the bond amount. The bondholder, EVO FUND, has the option to call the bond with a month’s notice, except during the first three months.

The bonds are guaranteed by Simon Gerovich, the company’s Representative Director and President, and secured by a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, owned by Metaplanet’s wholly-owned subsidiary, Wen Tokyo Inc. No bond administrator will be appointed as the bonds meet the requirements set by the Companies Act.

Bitcoin Acquisition Strategy

The proceeds from the bond issuance will be used exclusively for purchasing Bitcoin. Metaplanet’s policy is to hold Bitcoin for the long term. Bitcoin intended for long-term holding will be recorded at cost, exempt from end-of-term market value assessment taxation. 

For other Bitcoin holdings, market value evaluation will occur quarterly, with gains or losses recorded under non-operating income or expenses. Should Bitcoin be utilized for operational purposes, it will be classified as a current asset on the balance sheet. 

As of the latest update, Metaplanet holds 141.0727 Bitcoins, purchased at an average price of ¥10,278,391 per Bitcoin, amounting to a total of ¥1.45 billion.

Future Outlook

Metaplanet anticipates that this transaction will have a minimal impact on its consolidated performance for the fiscal year ending December 2024. The company commits to promptly notify stakeholders if any significant impact is determined.

This shows Metaplanet’s commitment to integrating Bitcoin into its financial strategies, reflecting a growing trend among corporations to leverage cryptocurrency as part of their investment portfolios. For Instance MicroStrategy now has a Bitcoin Stash of 226,331 BTC after Latest Purchase of $786M worth of Bitcoin.

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