Metaplanet Greenlights $6.3M Bond Sale to Grow Bitcoin Portfolio

Metaplanet to Acquire ¥1 Billion in Bitcoin, Funded by Bond Sale; Shares Surge 10.8%.

Key Takeaways: 

  • Metaplanet announced plans to acquire ¥1 billion ($6.3 million) worth of Bitcoin.
  • The acquisition will be funded by proceeds from an upcoming bond sale.
  • This purchase will boost Metaplanet's total Bitcoin holdings to over 240 BTC.
  • Metaplanet's shares surged 10.8% after the announcement.

Insight into Metaplanet Bitcoin Purchase

Japanese investment firm Metaplanet is set to acquire Bitcoin valued at 1 billion yen ($6.3 million). The executive board announced this in a communique on July 24. 

The funds for this purchase will be sourced from the capital raised through the issuance of the second series of ordinary bonds, which carry an annual interest rate of 0.5% and will mature on June 25, 2025. 

This substantial purchase will augment Metaplanet's Bitcoin holdings by 100 Bitcoins, bringing its total holdings to approximately 240 BTC ($15 million).

The newly purchased Bitcoin will be held for the long term. 

Metaplanet’s notice further explained that Bitcoin designated for long-term holding will be recorded at cost and exempt from end-of-term market value assessment taxation. This accounting treatment allows the company to stabilize its balance sheet and mitigate the volatility of quarterly revaluations. 

Conversely, other Bitcoin holdings will be evaluated at market value every quarter, with gains or losses recorded under non-operating income or expenses. 

Metaplanet has made three separate Bitcoin purchases within the last seven weeks. 

The company initially purchased 97.85 BTC on April 23, 2024. Later on, it acquired 19.87 BTC and 23.25 BTC on May 10 and June 11, respectively. 

Metaplanet stock shot up to 95 Yen

Following the announcement, Metaplanet's stock soared 10.8% on the Tokyo Stock Exchange, demonstrating investors' confidence in the firm's strategy to seize opportunities from the cryptocurrency market.

How Does This Impact Japan’s Economic Outlook?

Metaplanet Bitcoin purchase strategy hedges against economic uncertainties, including the yen depreciation and inflation. 

The Japanese yen has depreciated nearly 35% against the US dollar since January 2021, while Bitcoin has appreciated almost 200% against the yen in the past 12 months, thus validating the company’s decision to invest in the cryptocurrency.

At the current BTC market price of $62.6K, Metaplanet’s Bitcoin holdings have already yielded over a 4% gain. This gain showcases Bitcoin's potential for long-term capital appreciation and portfolio growth.

Metaplanet is often called “Asia's MicroStrategy” due to its bold approach to buying Bitcoin. Like MicroStrategy, the US company with the largest corporate Bitcoin holdings, Metaplanet aims to expand its holdings using a range of capital market instruments.