Metaplanet Inc., a publicly traded company on the Tokyo Stock Exchange, is increasing its efforts to build its Bitcoin wallet. According to multiple reports, a Japanese Bitcoin consulting firm has issued 4.5 billion yen ($30 million) worth of zero-interest bonds to finance its operations. Bitcoin acquisition strategy.
The company shared this news about the bond issue in a statement published on its website on December 17. This is the fourth product in the series and formally bears this name Metaplanet Inc. Series IV Ordinary Bonds.
The total amount of the bonds is worth 4.5 billion yen, and each bond is worth 250 million yen. According to the company’s announcement, the bonds do not bear interest and the maturity date is June 16, 2025.
*Metaplanet to issue 4.5 billion yen of common bonds to accelerate Bitcoin purchases; Repayment will be made from the proceeds from the exercise of the warrant* pic.twitter.com/oS93rD7uXk
— Metaplanet Inc. (@Metaplanet_JP) December 17, 2024
Image: OneSafe
Metaplanet and its quest to become the largest Bitcoin holder in Asia
Metaplanet’s December bond offering is the fourth in a series aimed at financing the Bitcoin strategy. As a listed company, Metaplanet uses financial leverage Bitcoin as its main reserve asset and seeks to operate excess cash to invest in Bitcoin.
According to the corporate manifesto, Bitcoin is taking over the shift towards Bitcoin thanks to the asset’s unique characteristics such as scarcity and apolitical monetary policy.
The latest bond issuance is part of the company’s strategic plan to become the largest holder of Bitcoin in the region. According to the disclosed information, the bonds will be issued in tranches, thanks to which the company will be able to raise money to purchase Bitcoins.
A strategic plan to enhance your Bitcoin holdings
Metaplanet Inc. began its Bitcoin buying spree in April 2024. As of this writing, the Japanese company has already added 1,150 Bitcoins, or $122.67 million, to its holdings. Metaplanet’s investment thesis is similar to that of MicroStrategy, of which it is the leader Michael Saylor.
The issuance of up-to-date bonds is expected to accelerate investment in digital assets. By offering zero-interest bonds, the company can avoid short-term financial problems while also using fresh funds to add more digital assets. This is also a favorable scenario for investors as these bonds are offered at a discount but are repaid in full at maturity.
BTC price up in the last week. Source: Coingecko
The market has responded well to these recent events; the company’s shares are up 51% in the last five days. The company’s market capitalization rises to over $1 billion and its shares hit a high of 4,270 yen. Metaplanet Inc. CEO Simon Gerovich appreciated the overwhelmingly favorable market reaction to this move.
Metaplanet and BTC rewards program
In addition to its bond issuance approach, Metaplanet also revealed its Bitcoin rewards program. The company recently launched a 30 million yen ($199,500) prize pool to honor owners of at least 100 shares as of December 31, 2024.
Using a lottery system, the company will select 2,350 shareholders who will receive different amounts of Bitcoin.
Featured image from UEEx, chart from TradingView
