Japan’s Metaplanet to Issue 4.5 Billion Yen in Bonds for Bitcoin Expansion

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As a seasoned crypto investor with over two decades of market experience, I find myself increasingly intrigued by the strategic moves of corporate entities like Metaplanet in Japan. Their latest decision to issue 4.5 billion Yen in bonds to accelerate Bitcoin purchases is a bold and innovative step that underscores their commitment to digital assets.

Japan’s Metaplanet is expanding its digital presence within the cryptocurrency sector, as corporate interest in this market continues to surge. On Tuesday, the publicly traded firm based in Tokyo announced it will raise approximately 4.5 billion Yen through bond issuance to EVO FUND, to expedite its Bitcoin-related expansion strategies.

During the Board Meeting that took place on December 17, 2024, our financial services firm chose to reveal some information.

Metaplanet to Issue 4.5 Billion Yen in Bonds

This 4.5 billion yen bond represents the fourth time the company has issued a series of ordinary bonds since it started holding Bitcoin as a strategic reserve earlier this year. Unlike the previous issues, this new bond won’t accrue any interest.

Metaplanet will sell 4.5 billion yen worth of ordinary bonds to speed up Bitcoin acquisitions; they plan to repay this amount using the funds received from exercising warrants.

— Metaplanet Inc. (@Metaplanet_JP) December 17, 2024

As stated in the official record, the redemption money will come from the profits gained when previously issued warrants are exercised. These bonds have a maturity period of six months, and they will be fully redeemed on June 16, 2025, for their original value of ¥100 per ¥100 worth.

After all assurances and related agreements have been finalized, the withdrawal will take place straightaway. Proceeds garnered from bond sales are designated exclusively for buying Bitcoins, a move that follows the company’s plan to bolster its digital currency holdings.

As an analyst, I can share that following the completion of our current offering, Metaplanet intends to release further private placement bonds, potentially amounting to 5 billion Yen in total. Notably, these bonds are earmarked for issuance to EVO FUND, either individually or across various branches. Similar to past instances, the funds generated from these upcoming placements will be allocated towards Bitcoin acquisitions.

Corporate Bitcoin Purchases

The business is continuously building up a significant amount of the premier cryptocurrency, currently holding the most Bitcoin among Asian corporations, having recently acquired over 1,150 Bitcoins following its purchase on November 19.

As an analyst, I’ve noticed that my own research isn’t limited to just the Japanese firm; several other financial services companies are following in the footsteps of MicroStrategy by adopting Bitcoin as a strategic move to protect against inflation and potential market challenges.

Last week, Jetking Infotrain Limited from India became the first publicly traded company in the country to venture into cryptocurrencies by purchasing 12 Bitcoins on December 9. This 77-year-old tech company has followed in the footsteps of MicroStrategy, Metaplanet, and others by adopting Bitcoin as a means of long-term investment.

This past week, MicroStrategy further boosted its Bitcoin reserves by purchasing around 15,350 Bitcoins from December 9 to December 15, at a total cost of approximately $1.5 billion. The crypto asset was obtained at an average price point of roughly $100,386 per BTC.

Beyond MicroStrategy, the healthcare technology company Semler Scientific Inc., also acquired 211 Bitcoin units. This purchase increases their total Bitcoin holdings to a grand sum of 2,084 Bitcoin units.

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2024-12-17 12:51