Metaplanet, a Japanese publicly traded investment company, It has been secured. A 1 billion yen ($6.8 million) loan to buy additional bitcoins. This comes just days after announcing plans to raise 10.08 billion yen through a stock rights offering, most of it to buy bitcoins.
BREAKING: 🇯🇵 Japanese public company Metaplanet obtains a loan of one billion yen to buy more #Bitcoin pic.twitter.com/VNVemLD9cy
— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024
Metaplanet first revealed its Bitcoin treasury strategy in May, aiming to hedge against a depreciating yen. The company currently holds about 246 Bitcoins worth $14 million, purchased through multiple purchases.
The 0.1% annual interest loan from MMXX Ventures, a joint venture, has a term of 6 months. Metaplanet plans to allocate the entire 1 billion yen to expand its Bitcoin reserves.
At current prices, about 118 additional bitcoins could be purchased for 1 billion yen. This mimics MicroStrategy’s tactic of raising debt to fund its bitcoin purchases since 2020. MicroStrategy’s bet on bitcoin has led to a significant increase in its stock price.
The company’s CEO Simon Girovich stated that the company believes that Bitcoin offers dual benefits as an asset that can rise and protect against a weaker yen.
By securing loans and issuing shares to accumulate bitcoin, Metaplanet is essentially borrowing yen to accumulate sat. The company can repay the loans using future appreciation in bitcoin value.
The loan and planned equity offering highlight Metaplanet’s commitment to aggressively growing its bitcoin war chest. As a public company, this strategy indirectly exposes Japanese investors to bitcoin.
Disclaimer: Bitcoin Magazine is wholly owned by BTC Inc., which also operates UTXO Managementa dedicated capital allocation entity focused on the digital asset industry and invested in Metaplanet. UTXO invests in a variety of Bitcoin businesses, and holds significant stakes in digital assets.