Metaplanet Inc., a publicly traded Japanese firm often referred to as “Asia’s MicroStrategy” for its aggressive Bitcoin acquisition strategy, has announced significant moves to bolster its cryptocurrency reserves. The company has secured a loan of one billion Japanese yen (approximately $6.8 million) with an exceptionally low annual interest rate of 0.1% to acquire additional Bitcoin.
In a recent board meeting, Metaplanet revealed plans to raise approximately 10 billion Japanese yen, or about $69.13 million, through a new stock offering. The company intends to invest roughly 8.5 billion yen (about $58.76 million) of this amount directly into Bitcoin. The stock acquisition rights will be available to all common shareholders, with the allotment effective from September 6, 2024.
Metaplanet’s decision to expand its Bitcoin holdings comes amid Japan’s challenging economic landscape, characterized by high debt levels, negative interest rates, and a weakening yen. These factors are driving the company's strategy to increase its exposure to Bitcoin as a hedge against traditional financial uncertainties.
On July 16, Metaplanet acquired an additional 21.88 Bitcoins, worth 200 million yen (around $1.4 million at the time), at an average price of 9.14 million yen ($57,600) per coin. This purchase adds to the company’s substantial Bitcoin portfolio, which now includes approximately 246 Bitcoins valued at around $13.4 million.
The company's share price has seen dramatic growth over the past six months, soaring 364% to trade at 743 yen ($5.08) as of Thursday. This impressive surge reflects investor confidence in Metaplanet’s strategic Bitcoin investments. In May, Metaplanet’s shares experienced a remarkable 158% increase in just one week, emerging as one of the top performers among Japanese stocks.
Metaplanet, listed on the Tokyo Stock Exchange (TSE), is planning to tokenize its shares on the Bitcoin layer-2 network, Liquid. This move aims to provide greater access for U.S. investors and broaden the company’s market reach. Despite a significant downturn in the Japanese stock market on Monday—its worst one-day drop since 1987—Metaplanet remains committed to its Bitcoin strategy. The market decline was triggered by a rate adjustment by the Bank of Japan, raising short-term government bond rates from 0% to 0.25%, which reverberated through global markets.
Mirroring MicroStrategy’s approach to Bitcoin investment, Metaplanet continues to explore various capital market instruments to enhance its Bitcoin reserves. As of the end of July, MicroStrategy reported expanding its Bitcoin holdings to 226,500 bitcoins. Metaplanet’s strategic investments and plans are poised to make significant waves in the financial markets, reinforcing its role as a major player in the cryptocurrency space.
Metaplanet Inc.’s latest moves reflect its ambitious strategy to leverage Bitcoin as a key component of its financial portfolio. With substantial stock price gains, a new loan for Bitcoin acquisition, and plans to tokenize shares, Metaplanet is positioning itself firmly in the global cryptocurrency landscape. Investors and industry observers will be watching closely to see how these developments unfold and impact the broader market.
August 2024, Cryptoniteuae