Metaplanet secures ¥1.75B bond for Bitcoin purchase

Metaplanet, a significant player in Japan’s investment market, has deepened its commitment to Bitcoin (CRYPTO:BTC), solidifying its position as Asia’s second-largest corporate Bitcoin holder.

With 1,018 BTC valued at $92.18 million, representing 0.005% of the total Bitcoin supply, the company’s strategy is tied to Japan’s current economic struggles, marked by a weakening yen, significant government debt, and persistently low interest rates.

Bitcoin serves as a hedge for Metaplanet against this economic backdrop, becoming the primary reserve asset since April 2024.

The journey began in April with an initial acquisition of 117.7 BTC for $7.19 million.

This move was followed by a $6.8 million loan from MMXX Ventures to further invest in Bitcoin.

By October, Metaplanet had added 156 BTC for an additional $10 million, positioning Bitcoin as nearly 19% of its total market value which is a clear signal of its dedication to this asset class.

Recently, Metaplanet took another bold step by announcing a ¥1.75 billion ($11.8 million) bond issuance at a 0.36% interest rate, aimed exclusively at expanding its Bitcoin holdings.

The issuance was entirely purchased by EVO FUND, indicating strong investor confidence in this unconventional approach.

The bonds do not have direct collateral; however, Metaplanet secured them with a first-priority mortgage on the land and building of Hotel Royal Oak Gotanda, owned by its subsidiary, Wen Tokyo Inc.

Metaplanet’s strategic investment in Bitcoin amid economic challenges underscores its intent to shield itself from financial instability.

The outcome of this significant bet remains uncertain as market volatility continues to be a key factor.

Nonetheless, this move positions Metaplanet as a company to watch, with its high-stakes Bitcoin strategy drawing considerable attention in the evolving investment landscape.

At the time of reporting, the Bitcoin (BTC) price was $91,647.18.