Key Insights
- Metaplanet Inc. plans to purchase an additional $6 million worth of Bitcoin.
- The investment will be financed through a bond issuance with a 0.5% annual interest rate, maturing in 2025.
- The announcement caused Metaplanet’s stock to surge up to 12% in Tokyo trading.
TOKYO (MarketsXplora) – Metaplanet Inc (3350.T), a Japan-based investment advisor, announced plans on Monday to significantly increase its bitcoin holdings, underscoring growing corporate interest in cryptocurrency as a long-term asset.
The company’s board of directors has approved the purchase of an additional 1 billion yen ($6 million) worth of bitcoin, adding to its existing $9 million investment. This move will solidify Metaplanet’s position as Japan’s largest corporate holder of the cryptocurrency.
“While our basic policy is to hold Bitcoin for the long term, if we use Bitcoin for operations or other purposes, the corresponding Bitcoin balance will be recorded as current assets on the balance sheet,” Metaplanet stated in its official announcement.
*Metaplanet issues ¥1 billion in 0.5% bonds; proceeds to fund additional purchases of $BTC* pic.twitter.com/qKZQKHZ6MS
— Metaplanet Inc. (@Metaplanet_JP) June 24, 2024
To finance the acquisition, Metaplanet will issue bonds on Wednesday with an annual interest rate of 0.5%, set to mature on June 25, 2025. The news sparked investor enthusiasm, with the company’s stock price surging up to 12% during Tokyo trading hours, according to Yahoo Finance data.
Metaplanet’s bitcoin strategy began in April as part of an effort to reduce exposure to the Japanese yen and provide domestic investors with access to cryptocurrency through a tax-advantaged structure. The firm officially adopted bitcoin as a reserve asset in May and made an additional $1.6 million purchase in June.
Read also! Metaplanet Borrows $6.8 Million to Boost Bitcoin Reserves
As of Monday, Metaplanet holds 141 bitcoins, according to data from Bitcointreasuries. This latest move reaffirms the company’s commitment to cryptocurrency despite recent market volatility, with bitcoin trading at $62,202 as of Asian afternoon hours, down 3% in the past 24 hours.