Metaplanet, a publicly listed Japanese investment firm, is making waves in the cryptocurrency world as it secures a ¥1 billion loan to purchase more Bitcoin. This move comes shortly after the company announced plans to raise ¥10.08 billion through a stock rights offering, with the majority of the funds earmarked for Bitcoin acquisitions.
The company first unveiled its Bitcoin treasury strategy back in May, with the goal of hedging against yen depreciation. Currently, Metaplanet holds approximately 246 Bitcoins valued at $14 million, accumulated through various purchases.
The loan, which comes with a 0.1% APR and a 6-month term, was provided by shareholder MMXX Ventures. Metaplanet intends to use the entire ¥1 billion to bolster its Bitcoin reserves, potentially adding around 118 more bitcoins to its portfolio at current prices.
This borrowing strategy mirrors that of MicroStrategy, a company that has been leveraging debt to fund Bitcoin purchases since 2020. MicroStrategy’s bold move into Bitcoin has significantly boosted its share price.
Metaplanet’s CEO, Simon Gerovich, emphasized the dual benefits of Bitcoin as an appreciating asset and a hedge against currency devaluation. By accumulating Bitcoin through loans and stock offerings, the company is essentially borrowing yen to increase its Bitcoin holdings, with the expectation of repaying the loans with future Bitcoin gains.
This aggressive approach to growing its Bitcoin reserves underscores Metaplanet’s commitment to cryptocurrency investment. As a publicly traded company, its strategy indirectly exposes Japanese investors to the world of Bitcoin.
It’s important to note that Bitcoin Magazine is owned by BTC Inc., which also operates UTXO Management, a regulated capital allocator with investments in Metaplanet. UTXO maintains significant holdings in digital assets and supports various Bitcoin-related businesses.
