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 *Metaplanet issues ¥1 billion in 0.5% bonds; proceeds to fund additional purchases of $BTC* pic.twitter.com/qKZQKHZ6MS
A *Metaplanet directors authorize purchase of ¥1 billion of $BTC from bond proceeds* pic.twitter.com/4eZ6JfQ2cc
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
