Metaplanet Inc. to Purchase $6.3M Bitcoin via Bond Issuance

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As an analyst with a background in Japanese economy and finance, I find Metaplanet’s decision to invest heavily in Bitcoin using bond proceeds intriguing. The company’s strategic move to use Bitcoin as a treasury reserve asset is a bold one, especially given the current economic climate in Japan.

Metaplanet Inc., a Japanese corporation, experienced a significant surge in its share price on Monday, with gains exceeding 9%. The uptick came following the announcement that the company had been granted approval to allocate approximately 1 billion yen ($6.26 million) from an upcoming bond issue towards Bitcoin investment.

Metaplanet revealed on Monday its plan to employ one billion yen worth of the second issue of ordinary bonds, carrying an annual interest rate of 0.5%, towards additional Bitcoin investments. These bonds will be settled by June 25, 2025.

*Metaplanet directors authorize purchase of ¥1 billion of $BTC from bond proceeds* — Metaplanet Inc. (@Metaplanet_JP) June 24, 2024

After investing approximately 2.3 billion Japanese yen, or 250 million yen being a portion of it, in Bitcoin in early June, the company held around 141.07 Bitcoins by June 11th.

According to the data obtained from Bitcointreasuries, it appears that Metaplanet has been acquiring Bitcoins in a steady manner, with transactions taking place on April 23rd, May 10th, and June 11th.

In May, Metaplanet disclosed their choice to adopt Bitcoin as their strategic treasury reserve asset. This move was driven by economic conditions impacting Japan, including substantial government debt, prolonged negative real interest rates, and a depreciating yen.

Companies like Metaplanet are increasingly adopting a forward-thinking strategy by utilizing Bitcoin as a risk management tool during economic instability and potential deprevaluation of fiat currencies. This move signifies their faith in Bitcoin’s resilience and reliability.

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2024-06-24 09:56