Can Metaplanet really justify issuing $208M in 0% bonds to chase BTC gains?

Publicly traded company on the Tokyo Stock Exchange, Metaplanet, issued ¥30 billion (roughly $208 million) in zero-interest bonds on June 30, 2025, to purchase 1,005 new Bitcoins.

This increased its total holdings to 13,350 BTC (over $1.4 billion at current prices). The company also wants to raise over $5.4 billion to acquire up to 210,000 BTC by 2027 through its “555 Million Plan.” Metaplanet will control roughly 1% of all Bitcoin that ever existed and become the world’s second-largest corporate holder of Bitcoin if it succeeds.

CEO Simon Gerovich said the company’s year-to-date yield from its Bitcoin strategy is already 349%, and investors have responded enthusiastically.

Metaplanet’s supporters said using 0% bonds gives the company access to “free” capital without issuing new shares or taking on costly interest payments, but critics say the company’s approach is too dependent on Bitcoin’s price going up. They warn the community that Metaplanet could face enormous paper losses, declining investor confidence, and potential challenges repaying its bond obligations if the cryptocurrency experiences a sharp downturn (as it has many times before).

Metaplanet issues bonds to buy more Bitcoin

Metaplanet made headlines when it raised about ¥30 billion through zero-interest ordinary bonds (about $208 million). The company can now access a large pool of capital without any immediate cost, dilution of shareholder equity, or long-term interest obligations because they don’t have to pay any interest over the life of the bonds. 

Private institutional investor, EVO Fund, subscribed to the entire bond offering at 0% interest, which showed growing institutional interest in Bitcoin-based strategies in Japan, where investors seek alternative stores of value due to ultra-low interest rates and a weakening yen. It could also be a gamble that Metaplanet’s Bitcoin holdings will appreciate over time, increasing the company’s valuation and ability to repay the bond principal when it matures.

Metaplanet first allocated a portion of the $208 million to repurchase and cancel one of its previous bond series, worth ¥1.75 billion (about $12 million) with an interest rate of 0.36% per year, before buying new Bitcoin. It then used the remainder of the proceeds to buy 1,005 new BTC at an average price of $107,601 per coin, for a total cost of about $108 million. The company now holds 13,350 BTC and is ahead of well-known corporate holders like Tesla and Galaxy Digital.

Metaplanet plans to hold 210,000 BTC

Metaplanet’s holdings have quadrupled to 13,350 BTC from just 3,350 BTC three months ago, and the company plans to more than double its current position within the next six months to about 30,000 BTC by the end of 2025.

It aims to increase that number to 100,000 BTC by the end of 2026 and accumulate 210,000 BTC by 2027 (1% of all the Bitcoin that will ever exist). Metaplanet plans to raise $5.4 billion through bond issuance, private placements, and other capital market instruments under the “555 Million Plan” to fund this large-scale accumulation effort.

Zero-interest bonds look smart but carry risk

Zero-interest loans may carry no interest, but they are still debt obligations that must be repaid fully at maturity. 

Metaplanet has no recurring revenue stream from these holdings to help it repay its bond debt because Bitcoin is a non-productive asset and doesn’t yield income, pay dividends, or offer intrinsic returns unless sold. The company is essentially wagering that the value of Bitcoin will rise enough by the time the bonds mature to cover both the principal repayment and deliver substantial gains.

Metaplanet can sell just a fraction of its holdings at a higher price, repay its zero-interest debt in full, and retain most of its position, possibly doubling or tripling the net asset value on its books if Bitcoin rises steadily over the next two years.

However, the company will be holding debt that still needs to be paid, while its core asset depreciates on its balance sheet if the price of Bitcoin stalls or falls significantly. This scenario would undermine Metaplanet’s balance sheet and investor narrative because it would have to liquidate part of its holdings at a loss.

The collapse of Archegos Capital, Terra-Luna’s death spiral, or even WeWork’s implosion under unsustainable growth promises are cautionary tales of a broader danger many companies have faced when borrowing heavily to invest in assets that do not generate income.

Each case shows how aggressive financial engineering and optimistic growth projections masked deeper fragilities that only became visible when external conditions shifted. They also expose how quickly investor confidence can turn into panic when expectations aren’t met, especially when debt is involved.

Metaplanet’s capital strategy assumes that Bitcoin is a sound store of value and a high-growth asset that will appreciate enough to cover long-term debt commitments. The combination of a falling asset and a fixed debt repayment schedule that could cause a liquidity crunch or a sharp decline in investor trust poses a great danger to the company’s confidence in Bitcoin. 

Metaplanet could face serious challenges refinancing future obligations if capital markets tighten or institutional backers become less willing to underwrite zero-interest debt for crypto-heavy firms.

Similarly, the company is in an increasingly fragile position where even small missteps could trigger scrutiny as it grows its Bitcoin holdings and debt obligations. The regulatory tone could shift quickly if Japan’s financial regulators begin to question the prudence of allowing a listed firm to fund large, speculative bets with zero-cost leverage. 

Investors push up the stock after Bitcoin buy

Confidence in Metaplanet’s Bitcoin strategy remains high, at least in the short term, as investors pushed the company’s stock price up by 10% almost immediately after it disclosed it had raised millions through zero-interest bonds and used a large portion of it to buy another 1,005 Bitcoin.

Metaplantet is announcing ambitious goals, raising capital to buy more Bitcoin, and outlining a roadmap that could see it hold up to 210,000 BTC by 2027 in an environment where many companies remain cautious about digital assets. The company’s boldness attracted media attention and investor interest, especially among those who see Bitcoin as undervalued or believe it could one day replace fiat currencies as the world’s dominant store of value.

However, Metaplanet’s gains are only real if Bitcoin’s price remains high. The company’s balance sheet could quickly take a hit, and the same investors who are currently cheering the strategy could just as easily retreat, pulling down the stock price in the process if the price of Bitcoin were to drop by 20% or 30% suddenly.

Metaplanet’s stock has clearly done well, but the question is whether the current valuation reflects long-term value or short-term speculation. The market seems to be giving Metaplanet the benefit of the doubt. 

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