Crypto News – Japanese Company Metaplanet to Issue 1 Billion Yen Bond for Bitcoin Acquisition
Crypto News- Tokyo-based investment and consulting firm Metaplanet has announced its intention to issue 1 billion yen ($6.26 million) in bonds to fund the purchase of Bitcoin. This decision, approved by the firm’s board, was detailed in a notice released on Monday, June 24. The bonds will carry an annual interest rate of 0.5%, and the acquired Bitcoin will be held long-term.
Long-Term Bitcoin Holding Strategy
Metaplanet stated that the Bitcoin acquired from the bond sale is intended for long-term holding. This move aligns with their strategy to adapt to ongoing economic pressures in Japan, as previously communicated when they first began purchasing Bitcoin.
Metaplanet Shares Surge
Following the announcement, Metaplanet’s shares surged by 11.5%, trading at 96 yen ($0.60). This increase is part of an impressive 500% gain in the company’s stock price this year, according to Google Finance.
Bitcoin Market Update
Meanwhile, Bitcoin has experienced a decline, hitting a 40-day low at $62,733 after reaching nearly $72,000 in early June. Despite this, if Metaplanet proceeds with the purchase, they would acquire nearly 100 BTC, adding to their existing holdings.
Growing Crypto Holdings
Earlier in June, Metaplanet reported a total of 141.07 BTC after purchasing an additional 23.25 BTC. Their initial purchase was 117 BTC in mid-May, marking the beginning of their “Bitcoin-first, Bitcoin-only” treasury approach.
Comparison to MicroStrategy
Metaplanet’s aggressive Bitcoin acquisition strategy has drawn comparisons to the American software company MicroStrategy, which holds the largest Bitcoin reserves of any public company with 214,400 BTC valued at $13.4 billion, according to Bitbo.
Underwater on Current Strategy
As of their last report, Metaplanet’s average purchase price for Bitcoin was 10.28 million yen ($65,365) per BTC, indicating that the firm is currently operating at a loss on its Bitcoin holdings given the recent price drop.
This bold move by Metaplanet highlights the firm’s commitment to Bitcoin as a significant part of its financial strategy, mirroring similar strategies by major companies in the global market.
FAQ: Metaplanet’s 1 Billion Yen Bond Issue for Bitcoin Purchase
What is Metaplanet’s plan regarding the issuance of bonds?
Metaplanet plans to issue 1 billion yen ($6.26 million) worth of bonds to raise money for purchasing Bitcoin. The bonds will have an annual interest rate of 0.5%.
Why is Metaplanet issuing bonds to buy Bitcoin?
Metaplanet is issuing bonds to buy Bitcoin as part of its “Bitcoin-first, Bitcoin-only” approach to its treasury management. This strategy is a response to sustained economic pressures in Japan, aiming to leverage Bitcoin’s potential as a long-term store of value.
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