Metaplanet Issues $6.2 Million in Bonds to Buy More Bitcoin
Metaplanet, the Japanese firm that went all in on Bitcoin in April, has announced plans to issue 1 billion yen in ordinary bonds to purchase more Bitcoin. Despite recent market pullbacks, the firm remains committed to its Bitcoin strategy, adding to its existing 141.07 BTC balance as of its last purchase.
Metaplanet’s Bitcoin Strategy in Action
Metaplanet to issue 1 billion yen ($6.2 million) in ordinary bonds to buy Bitcoin
Bitcoin purchases guided by Metaplanet’s Director of Bitcoin Strategy, Dylan LeClair
Metaplanet’s stock on the Tokyo Stock Exchange climbs 9.2% after Bitcoin announcement
Company’s Long-Term Vision for Bitcoin
Metaplanet aims to offer Japanese and international investors exposure to Bitcoin
Focus on Bitcoin as a treasury reserve asset to hedge against weakening currencies
Continued commitment to buying Bitcoin despite short-term price fluctuations
Metaplanet’s Bonds vs. Bitcoin Growth Rate
0.5% annual interest rate on bonds vs. Bitcoin’s 59% compound annual growth rate
Bonds set to mature in June 2025 with restrictions on early redemption
Comparing bonds as a funding strategy to MicroStrategy’s Bitcoin acquisition model
Bitcoin Market Dynamics and Metaplanet’s Strategy
Bitcoin faces a 12% drop in value amid reduced market interest
Whales, miners, and governments contribute to increased market volatility
Metaplanet remains steadfast in its Bitcoin accumulation strategy, prioritizing long-term value over short-term fluctuations
Hot Take: Metaplanet Doubles Down on Bitcoin
Despite market turbulence, Metaplanet sticks to its Bitcoin strategy, issuing bonds to purchase more BTC. With a long-term vision and commitment to Bitcoin’s value, the firm navigates market uncertainty to bolster its position in the digital asset space.
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Bitcoin’s recent pullback has yet to shake the faith of Metaplanet, the public Japanese firm that went all in on BTC starting in April.
The firm announced late Sunday that it will issue another 1 billion yen ($6.2 million) in ordinary bonds, the proceeds of which will be used to purchase Bitcoin. At today’s prices, that would secure the company roughly 101 additional Bitcoin for its balance sheet, adding to its 141.07 BTC total as of its last purchase.
“Japan has the highest debt-to-GDP ratio in the world. Ongoing financial repression is the result,” wrote Dylan LeClair, MetaPlanet’s Director of Bitcoin Strategy, to Twitter on Monday. “Metaplanet’s aim is to provide Japanese and international investors alike exposure to Bitcoin supercharged by Japanese capital markets.”
By the end of trading on Monday, Metaplanet’s stock on the Tokyo Stock Exchange surged 9.2% to 95 JPY apiece. That puts it 400% over its trading price on April 8-the day before the company hailed Bitcoin as its new “core treasury reserve asset.”
Formerly focused on real estate and Web3 investing, Metaplanet’s latest Bitcoin strategy is remarkably simple: Issue debt and shares to buy more Bitcoin and, hopefully, watch its value rise over time.
The latest bonds carry an annual interest rate of 0.5%-far lower than Bitcoin’s compound annual growth rate of 59% over the past 10 years. The redemption date for the bonds is June 2025, though investors cannot call the bond within the first three months of purchase.
Speaking to Decrypt in May, Metaplanet said that it specifically intends to emulate MicroStrategy-the world’s largest corporate Bitcoin holder-which has accumulated 226,331 BTC (about $13.7 billion worth as of this writing) using company profits and massive convertible bond sales.
“We plan to continue buying Bitcoin, no matter the short-term exchange rate fluctuations, given the asset’s absolute scarcity; a stark contrast to the reality of perpetually weakening political currencies,” Metaplanet said at the time.
Bitcoin is down 12% this month amid what on-chain analysts call a lack of bull market interest or new investor demand. Whales and miners have been cashing out in droves, the German government is starting to dump its seized Bitcoin, and the Mt. Gox bankruptcy estate is now due to bring $9 billion worth of long-dormant BTC back to the market next month.
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