Metaplanet Secures $61 Million for Bitcoin Acquisition Strategy
Metaplanet Inc, known as Asian MicroStrategy, has raised 9.5 billion yen (approximately $61 million) to acquire more Bitcoin. The Japanese firm secured this capital through two bond issuances: a 5 billion yen ($31.9 million) fifth ordinary bond and a 4.5 billion yen ($28.7 million) bond issuance.
Metaplanet's Bitcoin Reserve Strategy
Both bonds feature a 0% interest rate with a maturity date of June 16, 2025. CEO Simon Gerovich indicated that these funds will accelerate Bitcoin purchases initially planned for the following year. Metaplanet began accumulating Bitcoin in May 2024 and has continued subsequent acquisitions.
Factors influencing Metaplanet’s strategy include Japan's depreciating yen and high government debt, projected to reach $11.224 trillion by 2029. The firm views Bitcoin as an investment and hedge against traditional financial risks.
Initially, Metaplanet secured a 1 billion yen loan to support its Bitcoin acquisition but reached its investment target for that loan within a few months. As of now, it has accumulated over 300 BTC. On August 20, the firm announced a 500 million yen ($3.4 million) investment to acquire an additional 57.273 BTC, bringing its total holdings to over 1000 BTC.
Metaplanet’s Bitcoin Strategy Yields Results
Since implementing its Bitcoin strategy, Metaplanet has become the largest corporate holder of Bitcoin in Asia. It recently launched a new Bitcoin Treasury operations line aimed at accumulating digital assets as part of its financial management strategy.
As of December 18, the company holds 1,142.287 BTC, valued at $110.3 million based on current market prices. Bitcoin is trading at $94,860.00 after a 7.38% decline in under 24 hours. This downward trend impacts other altcoins as well.
The Board of Directors initiated Bitcoin treasury management as a strategic focus. Metaplanet's “Bitcoin First, Bitcoin Only” approach aims to leverage long-term debt and periodic equity issuances to accumulate Bitcoin as an alternative to holding the weakening yen.
Metaplanet uses BTC Yield as its primary performance metric, measuring changes in total Bitcoin holdings relative to outstanding shares. To maximize BTC Yield, the firm plans to actively utilize various capital-raising instruments such as loans, equity issuances, and convertible bonds for Bitcoin purchases.