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- Metaplanet Inc has secured a loan of 1 billion Yen from MMXX Ventures Limited for the purpose of acquiring Bitcoin (BTC).
- This initiative aligns with Metaplanet’s objective to integrate BTC as its primary treasury reserve asset.
Additionally, Metaplanet intends to raise around 10 billion Yen in September, with over 8 billion earmarked for Bitcoin purchases.
On August 8, Metaplanet Inc. disclosed that it had obtained a 1 billion Yen loan from MMXX Ventures Limited, one of its investors. The entirety of the loan will be allocated for Bitcoin acquisition to enhance its holdings.
The loan carries an annual interest rate of 0.1% and has a duration of 6 months from the date of execution. Metaplanet opted for a lump-sum repayment approach.
As of the time of this report, Bitcoin is priced at $57,588. Metaplanet is expected to acquire approximately 118.414 BTC based on the current market value of BTC. According to Bitcoin Treasuries, Metaplanet Inc. held 246 BTC as of July 22.
Metaplanet Inc. stated that on June 28, a unanimous decision by its stakeholders shifted the company’s focus towards BTC and related ventures. The firm has formed partnerships with several entities in the BTC sector, including Microstrategy, Bitcoin Magazine, and Hoseki.
Since Metaplanet announced its engagement in BTC investments in April, the company’s stock price has seen a notable rise. Data from Google Finance reveals that Metaplanet’s stock prices have surged by over 290% since April.
Metaplanet Inc. plans to raise 10 billion Yen for BTC investment
The Japanese investment firm recently tweeted regarding its strategy to raise funds through the gratis allotment of stock acquisition rights to all its common shareholders.
Metaplanet indicated that this decision followed a comprehensive Board of Directors meeting on August 6. A significant portion of the funds raised will be directed towards further BTC acquisitions.
*Metaplanet announces ¥10.08 billion Gratis Allotment of Stock Acquisition Rights; proceeds to fund additional purchases of $BTC* pic.twitter.com/4OdTFdHnfF
— Metaplanet Inc. (@Metaplanet_JP) August 6, 2024
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The company will provide one stock acquisition right for each common share held by shareholders. Metaplanet confirmed that the rights distribution will commence on September 5, in accordance with each stakeholder’s shareholding ratio.
The exercise period will extend until October 15, after which the company will acquire any rights that shareholders do not exercise.
As of August 1, the Japanese firm issued 18,166,930 common shares, meaning the rights allocated will also total 18,166,930. The firm subtracted 2,288 shares for its treasury before finalizing the total number of shares. The set price for each acquisition right is 555 Yen. Metaplanet anticipates raising over 10 billion Yen from this exercise, assuming all shareholders act on their rights.
From the anticipated 10 billion Yen, Metaplanet plans to allocate 8.5 billion Yen for BTC purchases between September and December this year. The company will redirect 1 billion Yen towards redeeming corporate bonds and 500 million Yen for working capital.
Metaplanet Adopts BTC As Its Strategic Treasury Reserve Asset
In May, Metaplanet Inc. designated Bitcoin as its strategic treasury reserve asset as part of a strategic shift in its treasury management.
*Strategic Treasury Transformation and Bitcoin Adoption by Metaplanet* pic.twitter.com/Uz5RxkBV2D
— Metaplanet Inc. (@Metaplanet_JP) May 13, 2024
The company addressed concerns such as the weak Yen, elevated government debt levels, and prolonged periods of high interest rates that are contributing to economic pressures in Japan.
Metaplanet Inc. elaborated on the country’s economic landscape, noting that Japan has the highest debt-to-GDP ratio among developed nations, estimated at around 255%.
The firm highlighted the declining value of the Yen, which has fallen by over 50% in the last decade. Additional factors, such as the Bank of Japan’s implementation of a negative interest policy, have placed the country on a negative financial trajectory.
To address these escalating challenges, the investment company adopted BTC, creating a buffer against the depreciating currency. This strategy also aims to leverage BTC’s rapid growth as it expands into various global economies.
Metaplanet views BTC as a superior alternative to fiat currencies. The company has embraced a ‘Bitcoin first, Bitcoin only’ philosophy, recognizing BTC’s limited supply.
Metaplanet also intends to issue the liable Yen whenever feasible.
