Metaplaneta listed Japanese investment company, has secured a ¥1 billion ($6.8 million) loan to buy additional Bitcoin. This comes just days after it announced plans to raise ¥10.08 billion through a stock offering, primarily for Bitcoin purchases.
JUST IN: 🇯🇵 Japanese listed company Metaplanet gets ¥1 billion loan to buy more #Bitcoin photo.twitter.com/VNVemLD9cy
— Bitcoin Magazine (@BitcoinMagazine) August 8, 2024
Metaplanet was the first to reveal its Bitcoin Treasury Strategy in May, with the aim of hedging against yen depreciation. The company currently holds around 246 Bitcoins worth $14 million, acquired through multiple purchases.
The 0.1% APR loan from shareholder MMXX Ventures has a term of 6 months. Metaplanet plans to allocate the full ¥1 billion to expand its Bitcoin reserves.
At current prices, ¥1 billion could buy about 118 additional bitcoins. This mimics from MicroStrategy playbook for raising debt to fund bitcoin purchases since 2020. MicroStrategy’s bitcoin bet has sent its stock price soaring.
CEO Simon Gerovich stated that the company believes Bitcoin offers two advantages: it is an asset that can increase in value and it can provide protection against a weaker yen.
By securing loans and issuing shares to accumulate bitcoin, Metaplanet is essentially borrowing yen to accumulate sats. The company can repay loans with future bitcoin appreciation.
The loan and planned equity issuance underscore Metaplanet’s commitment to aggressively growing its Bitcoin war chest. As a publicly traded company, this strategy provides Japanese investors with indirect exposure to Bitcoin.
Disclaimer: Bitcoin Magazine is wholly owned by BTC Inc., which also UTXO managementa regulated capital allocator focused on the digital asset industry and invested in Metaplanet. UTXO invests in several Bitcoin companies and maintains significant holdings in digital assets.