Tokyo’s investment and consulting firm, Metaplanet, has announced a bold move to issue 1 billion yen ($6.26 million) in bonds to fund a significant Bitcoin purchase. The company revealed on June 24 that its board had approved the bond sale, highlighting its intention to hold Bitcoin for the long term. The bonds are set to offer an annual interest rate of 0.5%.
This news has already impacted Metaplanet’s stock, which surged 11.5% on Monday, closing at 96 yen ($0.60). This follows an extraordinary 500% rise in its share price since the beginning of the year, according to Google Finance.
Currently, Bitcoin is experiencing a dip, hitting a 40-day low. The cryptocurrency fell 2.6% in the past 24 hours, trading at $62,733, down from nearly $72,000 in early June, as per CoinGecko.
Should Metaplanet proceed with its planned purchase today, the 1 billion yen would net nearly 100 BTC, specifically around 99.84 BTC. This purchase will add to Metaplanet’s growing Bitcoin holdings, which totaled 141.07 BTC as of June 11, following an acquisition of 23.25 BTC.
Metaplanet initially entered the Bitcoin market in mid-May with a purchase of 117 BTC, committing to a “Bitcoin-first, Bitcoin-only” strategy in response to Japan’s economic challenges. However, with an average purchasing price of 10.28 million yen ($65,365) per Bitcoin, the firm’s strategy is currently underwater.
This aggressive Bitcoin acquisition strategy has led some to draw comparisons between Metaplanet and the U.S. software company MicroStrategy, which holds the most Bitcoin among publicly traded companies with 214,400 BTC valued at $13.4 billion, according to Bitbo data.
Metaplanet’s ambitious plan underscores its confidence in Bitcoin’s long-term value, despite the current market volatility.
Receive intel reports across 15+ web3 sectors daily –early access.