Metaplanet has announced plans to issue bonds worth 1 billion yen or $6.26 million to fund additional Bitcoin purchases. The company is considered Japan’s MicroStrategy, a tag it is now living up to with the same Bitcoin strategy.
Metaplanet Doubles Down On Bitcoin
Metaplanet ranks as the first Indigenous Japanese publicly listed firm to adopt the Bitcoin strategy. The firm has used excess capital on its balance sheet to fund the BTC purchases it has made thus far. However, this bond issuance is its way of upping the ante regarding the asset class.
Per the details it gave regarding the bond issuance, they will be issued at an annual interest of 0.5%. The Metaplanet bonds will mature on June 25, 2025, a year from now. Metaplanet was upfront about the purpose of the capital raised through the bond which it said will go to acquire more Bitcoin.
*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 now very frequent in its Bitcoin purchase moves. Earlier this month, the firm bought Bitcoin worth 250 million yen bringing its total held BTC to 141.07.
Investors are taking this news very well as the shares of Metaplanet have soared on Monday trading day. The stock is up 9.2% to 95 Yen as of writing.
Is The Bitcoin Strategy The Right Move?
Many companies in the traditional financial sector are jumping on the Bitcoin bandwagon. Besides the likes of MicroStrategy and Metaplanet buying directly, others are gaining exposure through ETFs.
The argument from Bitcoin proponents like Michael Saylor is that the coin is immune to devaluation. Compared to fiat currencies, Bitcoin now ranks as a better alternative. This bet has notably paid off for MicroStrategy since it adopted the Bitcoin strategy in August 2020.
Metaplanet is optimistic it can bag similar results moving forward. Despite the Metaplanet news, the price of BTC is down by 3.23% in 24 hours to $62,281.98.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of Crypto-Vanguard’s content as such. Crypto-Vanguard does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.