Metaplanet Turns To Bitcoin With Massive 4.5 Billion Yen Bonds

Metaplanet Inc., a publicly traded company on the Tokyo Stock Exchange, is ramping up its efforts to build its Bitcoin portfolio. According to multiple reports, the Japanese Bitcoin consulting company has issued ¥4.5 billion ($30 million) in zero-interest bonds to finance its Bitcoin acquisition strategy.

The company shared this news on its bond issuance through a disclosure posted on its website dated December 17th. This is the fourth in the series and formally carries the name Metaplanet Inc. 4th Series Ordinary Bonds.

The total amount of bonds is worth ¥4.5 billion, each costing ¥250 million. According to the company disclosure, the bonds are not subject to interest and will mature on June 16th, 2025.

*Metaplanet to issue 4.5 billion yen in Ordinary Bonds to Accelerate Bitcoin Purchases; Repayment to be made from Warrant Exercise Proceeds* pic.twitter.com/oS93rD7uXk

— Metaplanet Inc. (@Metaplanet_JP) December 17, 2024

Metaplanet And Its Quest To Become Asia’s Biggest Bitcoin Holder

Metaplanet’s December bond offering is the fourth in the series, aiming to fund its Bitcoin strategy. As a publicly traded company, Metaplanet leverages Bitcoin as a primary reserve asset and seeks to use its excess cash to invest in Bitcoin.

According to its corporate manifesto, it’s taking the Bitcoin pivot thanks to the asset’s unique qualities, such as scarcity and apolitical monetary policies.

The latest bond issuance is part of the firm’s strategic plan to become the region’s largest Bitcoin holder. According to its disclosure, the bonds will be released in tranches, allowing the firm to raise money to purchase Bitcoins.

A Strategic Plan To Boost Bitcoin Holdings

Metaplanet Inc. started its Bitcoin-buying spree in April 2024. As of this writing, the Japanese firm has already added 1,150 Bitcoins, or $122.67 million, to its holdings. Metaplanet’s investment thesis is similar to that of MicroStrategy’s, led by Michael Saylor.

The issuance of new bonds is expected to fast-track its investment in digital assets. By offering zero-interest bonds, the company can avoid short-term financial issues while using the fresh funds to add more digital assets. It’s also a win-win scenario for investors since these bonds are offered at a discount but are paid in full upon maturity.

The market responded well to these most recent events; shares of the company surged by 51% during the past five days. The company’s market capitalization is raised to more than $1 billion as its shares hit a high of ¥4,270. The CEO of Metaplanet Inc., Simon Gerovich, has appreciated the overwhelmingly favorable reaction of the market to the move.

Apart from its approach of bond issuing, Metaplanet also revealed its Bitcoin Rewards Program. Recently, the company started a ¥30 million ($199,500) prize pool to honor owners of at least 100 shares as of December 31, 2024.

Using a lottery system, the company will select 2,350 shareholders who will get varying amounts of Bitcoins.

Featured image from UEEx, chart from TradingView