Metaplanet to Issue Bonds to Acquire More Bitcoin

by

As a crypto investor with a background in Japanese finance, I’m excited about Metaplanet Inc.’s latest move to purchase Bitcoin worth 1 billion yen through bond issuance. This strategic decision aligns with the trend of institutions adopting Bitcoin as a reserve asset, following in the footsteps of MicroStrategy.

As a financial analyst at Metaplanet Inc., I’m excited to share that our company has made the decision to invest 1 billion yen ($6.26 million) in Bitcoin following approval from our board of directors. We plan to secure the necessary funds for this purchase through an upcoming bond issuance, marking the second series of ordinary bonds with guarantees for Metaplanet.

The proposed annual interest rate for the bonds is fixed at 0.5%, with the bonds maturing on June 25, 2025. Metaplanet clearly mentioned that the funds raised through this bond sale will be allocated towards purchasing Bitcoin. The scheduled date for the interest payments is set for June 26, 2024.

As a crypto investor following the news, I was elated to see Japan’s investment firm experience a significant surge in its stock price after announcing plans to issue bonds and securing the board’s approval. The early hours of Monday brought about an impressive 12% increase.

In early June, Metaplanet, a publicly traded investment firm based in Tokyo, obtained around $1.58 million worth of Bitcoin. This equated to approximately 250 million yen and resulted in the company owning a total of over 141.07 BTC. These purchases came following two earlier transactions on April 23 and May 10. According to Metaplanet’s official announcement, their average cost per Bitcoin was around 10.27 million yen or approximately $65,300 each.

All the recent Bitcoin purchases by Metaplanet are consistent with its most recent announcement in May. This Tokyo-listed company declared that they have chosen Bitcoin as their primary reserve asset for treasury purposes, joining other institutions adopting this trend. The preference for Bitcoin is due to its superior ability to function as a value store compared to Fiat currency.

As an analyst, I would express it this way: “I attribute the recent action to Japan’s persistent economic challenges. These include towering government debts, extended spells of negative real returns on investments, and a resulting depreciated yen.”

MicroStrategy Leads Charge to Adopt Bitcoin as a Reserve Asset

Michael Saylor’s company, MicroStrategy Inc (NASDAQ: MSTR), is among those that have chosen to hold Bitcoin as part of their reserve assets. It’s reasonable to assume Metaplanet is considering a similar approach based on MicroStrategy’s Bitcoin adoption.

MicroStrategy’s purchase of Bitcoin dates back to 2020, following the onset of the Covid-19 pandemic. After raising $800 million through convertible note offerings in 2024, MicroStrategy then bought an extra 11,931 Bitcoins for approximately $786 million, as stated in the June 20, 2024 press release.

As a crypto investor, I’ve just made a new purchase that increases my Bitcoin holdings to a total of 226,331 coins. With each coin currently priced at around $62,335, my entire investment is now valued at approximately $13.8 billion. However, it’s important to note that the market price was higher when I made the purchase, at roughly $66,000 per Bitcoin, so my holdings are worth slightly more than reported here. Unfortunately, since then, the price has dropped by about 3.13%, meaning it’s now trading at around $62,335.

Significant, MicroStrategy and Saylor’s Bitcoin possession signifies their pioneering role in utilizing Bitcoin as a reserved asset. Metaplanet’s declaration highlights that more corporate treasuries are considering this approach.

Read More

2024-06-24 10:37