Metaplanet Raises $61M to Acquire More Bitcoin

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As a seasoned crypto investor with a keen eye for emerging trends, I find Metaplanet Inc’s strategic move to acquire more Bitcoin intriguing. Having witnessed the meteoric rise of Bitcoin over the years, I can appreciate the strategic foresight that this Japanese firm is demonstrating.

As a crypto investor, I’ve just learned that Metaplanet Inc., often called the “Asian MicroStrategy,” has managed to secure approximately $93.6 million (9.5 billion yen) through two tranches of bond issuance. The first tranche was a decision to issue 5 billion yen ($31.9 million) as their fifth ordinary bond, and the second tranche was another bond issuance for 4.5 billion yen ($28.7 million). This capital influx is intended to acquire more Bitcoin. At the current rate, that’s around 1540 BTC ($95,034 each), given a market cap of $1.89 trillion and a daily trading volume of $132.45 billion. With this move, Metaplanet is clearly demonstrating its commitment to Bitcoin as part of their investment strategy.

Metaplenet to Fuel Its Bitcoin Reserve Strategy

From my perspective as an analyst, I’m reviewing two bonds with a zero percent interest rate, maturing on June 16, 2025. Notably, Simon Gerovich, CEO of Metaplanet, announced that they will expedite and intensify their Bitcoin acquisition plans, which were originally set for the following year.

The MetaPlanet has raised 50 billion yen through the 5th issue of common stock bonds with EVO FUND as the designated recipient, and the total amount raised for the 12th new share subscription right is 95 billion yen. With these funds, we plan to accelerate the Bitcoin purchase that was originally planned for 2025 and execute it this year. We will provide more details about the results of the Bitcoin purchase at a later time…

— Simon Gerovich (@gerovich) December 20, 2024

In May 2024, Metaplanet embarked on a buying spree of Bitcoins and continued this strategy through additional purchases since then.

The deteriorating value of the yen and Japan’s substantial government debt were key considerations in Metaplanet’s strategic planning. Given that Japan’s national debt is projected to exceed $11.224 trillion by 2029, Metaplanet sees Bitcoin as a valuable investment and a protective measure against conventional financial perils.

Initially, the company obtained a loan worth 1 billion yen to pursue its buying of Bitcoins further. However, just a few months back, it reached its investment goal tied to that particular loan.

Currently, Metaplanet has accumulated over 1000 Bitcoins in its holdings. On August 20th, they disclosed their investment of approximately $3.4 million (500 million yen) to acquire an additional 57.273 BTC. This puts them among other financial companies that are following the trend of treating Bitcoin as a part of their treasury assets.

Metaplanet’s Bitcoin Strategy Brings Great Yield

After implementing a Bitcoin investment approach, Metaplanet has garnered numerous successes. In just a few short months, their Bitcoin acquisition plan catapulted Metaplanet to the position of Asia’s largest corporate owner of Bitcoin. Lately, they unveiled plans for a new business division dedicated to Bitcoin Treasury operations. The aim is to aggressively amass digital assets as part of their financial management strategy.

On December 18th, the company owned approximately 1,142,287 Bitcoins, which at current market prices equate to around $110.3 million. Currently, Bitcoin is trading at roughly $94,860.00, representing a 7.38% drop over the past day. This decline has caused Bitcoin to plummet, and as a result, many other altcoins have been falling for more than 7 months now.

Metaplanet’s Board of Directors has prioritized managing Bitcoin holdings as a central strategic objective. Adopting a “Bitcoin First, Bitcoin Only” strategy, they intend to use long-term borrowing and periodic stock offerings to consistently acquire Bitcoin, serving as an alternative to holding the depreciating Japanese yen.

As an analyst, I’m sharing that Metaplanet has chosen Bitcoin Yield as its primary gauge for performance. This metric calculates the percentage change in the company’s entire Bitcoin holdings relative to the total number of outstanding shares after considering all dilutive factors. To optimize our Bitcoin Yield, we aim to strategically leverage diverse funding methods like loans, equity sales, and convertible bonds to acquire and build our Bitcoin reserves.

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2024-12-20 17:10