MetaplanetPublicly listed Japanese investment companies, Secured A 1 billion yen ($6.8 million) loan to buy additional bitcoin. This comes just days after the company announced plans to raise 10.08 billion yen through a stock warrant issue, primarily to buy bitcoin.
Latest Update: 🇯🇵 Japanese listed company Metaplanet secures JPY 10 billion loan and makes further acquisitions #Bitcoin pic.twitter.com/VNVemLD9cy
— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024
Metaplanet is the first Bitcoin Financial Strategy The company listed Bitcoin in May as a hedge against the weak yen. The company currently holds about 246 Bitcoins acquired through several purchases, valued at $14 million.
The loan from shareholder MMXX Ventures has a tenor of six months and carries an annual interest rate of 0.1%. Metaplanet plans to use the entire JPY 1 billion to expand its Bitcoin reserves.
At the current price, 1 billion yen would buy about 118 additional bitcoins. MicroStrategy It has used a strategy of increasing debt to fund its bitcoin purchases since 2020. MicroStrategy’s bets on bitcoin have driven a dramatic rise in the stock price.
CEO Simon Gerovich said the company believes Bitcoin offers the dual benefit of rising in value and serving as a hedge against the weakening yen.
By taking out loans to accumulate bitcoin and then issuing shares, Metaplanet is essentially borrowing yen to accumulate sats, allowing the company to use future bitcoin price increases to repay the loans.
The financing and planned IPO underscore Metaplanet’s efforts to aggressively grow its Bitcoin war chest. As a publicly traded company, the strategy will indirectly expose Japanese investors to Bitcoin.
Disclaimer: Bitcoin Magazine is wholly owned by BTC Inc., which also owns UTXO Managementis a regulatory capital allocator focused on the digital asset industry and has invested in Metaplanet. UTXO invests in various Bitcoin ventures and holds significant amounts of digital assets.
