Crypto news: Japanese company Metaplanet obtains ¥1 billion loan for Bitcoin acquisition
Metaplanet Inc., a publicly traded Japanese company, has announced it secured a loan of one billion Japanese yen ($6.8 million) at an annual interest rate of 0.1% to purchase additional Bitcoin. The company, often referred to as “Asia’s MicroStrategy” due to its aggressive Bitcoin acquisition strategy, has recently amassed a substantial amount of Bitcoin, creating a significant impact on the financial markets.
Metaplanet Plans to Raise 10 Billion Yen
On Monday, The company revealed plans to invest approximately 8.5 billion Japanese yen, or $58.76 million, in Bitcoin through a new stock offering. The company aims to raise a total of 10 billion yen, or about $69.13 million, by issuing stock acquisition rights to all common shareholders.
The decision was made during Metaplanet’s Board of Directors meeting. All common shareholders will receive the stock acquisition rights as of September 5, with the allotment effective from September 6 onward.
The company cited Japan’s high debt levels, persistent negative interest rates, and weakening yen as factors driving its decision to acquire more Bitcoin.
On July 16, Metaplanet purchased an additional 21.88 Bitcoins, worth ¥200 million ($1.4 million at the time), at an average price of ¥9.14 million ($57,600) per coin.
Plans to Tokenize Metaplanet Shares
The company is currently listed on the Tokyo Stock Exchange (TSE), limiting access for U.S. investors. The company plans to tokenize its shares on the Bitcoin layer-2 network Liquid to increase accessibility.
In May, The company experienced a remarkable surge in its share price, soaring 158% in a single week and becoming the highest gainer among all Japanese stocks.
Stock Surges 364% in Six Months
Over the past six months, Metaplanet has seen its stock price increase by 364%, reaching 743 yen ($5.08) on Thursday.
Despite the market downturn on Monday, when the Japanese stock market suffered its worst one-day drop since 1987 due to the Bank of Japan’s adjustment of short-term government bond rates from 0% to 0.25%, Metaplanet has revealed its intention to strategically use a range of capital market instruments to bolster its Bitcoin reserves, following a strategy similar to MicroStrategy.
In its recent earnings call, MicroStrategy reported expanding its Bitcoin holdings to 226,500 Bitcoins as of July 31. Since entering the Bitcoin market in April, Metaplanet has accumulated approximately 246 Bitcoins, worth around $13.4 million.
