Metaplanet Bitcoin Strategy: $33M Bonds Issued to Expand BTC Holdings

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Metaplanet, a Japanese Tokyo-listed company, is taking a major step to increase its Bitcoin reserves by issuing 5 billion yen (about $33.3 million) in ordinary bonds. These bonds paid on December 20th will mature on June 16, 2025, giving the company ample time to carry out its Bitcoin purchasing plan. The company plans to repay the bonds using money raised from selling stock rights, ensuring it stays financially secure while growing its Bitcoin holdings. 

Now the question arises is it a strategy or a gamble following the bigger companies adding Bitcoin to sustain financial strain? As of now, companies across the world using this strategy have gained like MicroStrategy. This bitcoin buying plan has doubled companies’ stock prices in just 5 years.

*Metaplanet to issue 5.0 billion yen in Ordinary Bonds to Accelerate Bitcoin Purchases; Repayment to be made from Warrant Exercise Proceeds* pic.twitter.com/9Sr6a5kDkD

Metaplanet’s Bitcoin buying spree began in April 2024 and has already added 1,150 BTC, worth $122.67 million, to its holdings. The company sees Bitcoin as valuable because it has a limited supply and isn’t controlled by governments. This new bond plan is part of Metaplanet’s goal to become Asia’s largest Bitcoin holder, following a strategy similar to MicroStrategy’s, using Bitcoin as a key asset to handle future financial challenges. 

The announcement has gone well with crypto investors, triggering Metaplanet’s stock up by 51% in just five days with a whopping market cap of more than ¥1 billion, with shares hitting ¥4,270. CEO Simon Gerovich thanked investors for their support and said the company is confident about its plans. Moreover, Zero-interest bonds reduce short-term financial strain while boosting long-term Bitcoin investments.

To make it attractive for investors they are also coming up with Bitcoin Rewards Program. Shareholders who own at least 100 shares by December 31, 2024, will be entered into a lottery to win Bitcoin from a ¥30 million ($199,500) prize pool. A total of 2,350 winners will be chosen, with prizes varying in size.

The future is bright if the company manages to stick to its plan as it will require long-term planning and short-term plans can only give a calculated profit. Countries are following Bitcoin since the US is going all out to support the crypto to become a top leader in terms of holding maximum Bitcoin. However, the supply is limited and such accumulations can be risky if not planned properly.