Metaplanet To Expand Bitcoin Holdings With $11.5 Million Bond Sale
In an announcement, Japanese firm Metaplanet plans to increase its Bitcoin (BTC) holdings by issuing $11.3 million worth of bonds.
Metaplanet To Increase BTC Holdings Through Bond Issuance
On November 18, Metaplanet's Board of Directors approved a debt sale valued at 1.75 billion yen, or approximately $11.5 million. The bonds will mature on November 17, 2025, with an interest rate of 0.36% per annum.
The proceeds will be used exclusively for purchasing BTC. Metaplanet currently holds 1,018 BTC.
Often referred to as "Asia’s MicroStrategy," Metaplanet's announcement follows MicroStrategy's acquisition of 27,200 BTC, valued at around $2.03 billion.
Beginning in April, Metaplanet adopted a “Bitcoin-first, Bitcoin-only” strategy. Since then, it has steadily increased its Bitcoin portfolio, acquiring 20.195 BTC in June for approximately $1.2 million and another 38.464 BTC in September for about $2 million. Most recently, in October, it purchased 156.78 BTC, surpassing 1,000 BTC in total holdings.
Despite the bond issuance announcement, Metaplanet’s share price rose only slightly, closing up 0.81%. However, since initiating its Bitcoin acquisition strategy, the stock has surged nearly 950%, rising from 190 yen ($1.23) on April 4, 2024, to 1,994 yen ($12.86) today.
Bitcoin Supply Scarcity To Further Propel Price?
Increasing demand for Bitcoin from retail, institutional, and sovereign investors combined with its capped supply of 21 million could create a supply shock, potentially elevating prices significantly.
A recent analysis indicates that BTC reserves on exchanges have dropped to a five-year low, suggesting that more investors are holding Bitcoin long-term as a hedge against inflation and currency debasement.
Moreover, another report highlights that BTC demand greatly surpasses its supply. This imbalance may trigger Bitcoin's next significant price movement. Currently, BTC trades at $90,909, reflecting a 0.1% increase in the past 24 hours.
