Metaplanet Issues $30M Bonds to Boost Bitcoin Reserves

• Metaplanet plans to raise 4.5 billion yen to boost its Bitcoin holdings with zero-interest bonds.
• The company will repay bonds using funds from previously issued warrants to manage debt.
• Metaplanet’s Bitcoin strategy is a hedge against Japan’s debt and the yen’s volatility.

Metaplanet, a Tokyo-based firm, recently disclosed that it plans to sell ordinary bonds worth 4.5 billion yen ($30 million) to facilitate the purchase of Bitcoins. The decision is an extension of the company’s strategy to establish a significant Bitcoin reserve emulating from U.S.-based MicroStrategy. This aligns with Metaplanet’s strategy to consider Bitcoin an important company asset.

Zero-Interest Bonds Strategy

The zero-interest-rate bonds are from the fourth series of Metaplanet’s bond offerings. As such, the company has until June 16, 2025, to exercise its plan of purchasing Bitcoins, which is still a reasonable period. Metaplanet achieves this by floating zero-interest bonds, which helps it cut its short-term costs and concentrate on long-term capital appreciation through Bitcoin.

Metaplanet has implemented the following clear strategy to address bond repayment. The company plans to redeem the bonds using the cash proceeds from exercising the previously issued warrants.

Hedging Against Economic Risks

The move to sell bonds without interest measures Metaplanet’s belief in the cryptocurrency market. Metaplanet can invest more money into increasing its position in Bitcoin, which is considered the primary focus of the company’s investment activities.

This bond issuance is part of Metaplanet’s wider strategy to build up its Bitcoin balance to hedge against Japan’s rising national debt and the yen volatility. The company began investing in Bitcoin in April 2024 and has purchased 1,142 BTC, which, at current market prices, is valued at about $122,673,000. Metaplanet conducted a one-year ordinary bond offering in November 2024 which was worth 1.75 billion yen or $11.3 million with interest rate of 0.36%. This issuance also increased the number of Bitcoins in the company’s possession. 

Metaplanet has been using bond offerings to buy Bitcoin to enhance its capital management approach. To achieve this goal, the company plans to issue zero-interest bonds to increase market share. The increasing acceptance of Bitcoin worldwide is the key factor pushing the digital assets market forward.

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