Japanese investment firm Metaplanet is planning to sell one billion yen in bonds to buy Bitcoin, as part of its long-term strategy.
The move, which was approved by the company’s board of directors today (June 24), forms part of their stated goals to increase cryptocurrency holdings for long-term investments.
The billion yen (approximately $6.3 million USD) would allow Metaplanet to purchase almost 100 Bitcoin, increasing its holdings from 141.0.7 to around 241 BTC.
According to a document posted on X by the Tokyo-based company, the bonds are set to be issued on June 26. They will offer an annual interest rate of 0.5% and mature on June 25, 2025.
A further document states that the bond sale is specifically to fund the purchase of Bitcoin. “The funds for this purchase will be allocated from the capital raised through the issuance of the second series of ordinary bonds (with guarantees), as disclosed separately today.”
This announcement has caused a boost to Metaplanet’s stock prices, which saw an 11.5% surge to 96 yen ($0.60). The company’s stock performance this year reflects this surge – the price of Metaplanet stocks has increased over 500% since the start of 2024.
Why is Metaplanet doing this now?
Even though some projections have Bitcoin increasing to as much as $100k before the end of June 2024, it is currently on a downward trend (caused in part by political uncertainty in the EU). It has fallen by 2.6% in the past day, reaching a 40-day low of $62,733.
Savvy investment advice tells us that purchasing a commodity when it is in a short-term slump, amidst predictions that it will soon soar past the previous high of $72,000, is a smart plan, and the surge on Metaplanet’s stock prices certainly suggests that investors agree.
Metaplanet intends to use a “Bitcoin-first” treasury strategy to combat a difficult economic situation in Japan, which is facing a weakened yen and frequent negative real interest rates.
Featured image credit: Generated with Ideogram
