Japanese Firm Metaplanet Secures $6.8M Loan for Bitcoin Acquisition Amid Strategic Expansion

Metaplanet Inc. secured a $6.8 million loan to acquire more Bitcoin, with plans to raise $69.13 million through stock offerings. The firm aims to bolster its Bitcoin reserves amid Japan’s economic challenges.

Metaplanet Inc., a publicly traded Japanese company, announced it has secured a loan of one billion Japanese yen ($6.8 million) with an annual interest rate of 0.1% to acquire more Bitcoin. The company, dubbed “Asia’s MicroStrategy” due to its aggressive acquisition of Bitcoin, has amassed significant amounts of Bitcoin recently. With its recent acquisition, the firm is making significant waves in the financial markets.

Metaplanet Plans to Raise 10 Billion Yen

On Monday, Metaplanet said it will invest approximately 8.5 billion Japanese yen, or $58.76 million, in Bitcoin through a new stock offering. The company plans 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.

In the company’s disclosure, Metaplanet cited Japan’s high debt levels, persistent negative interest rates, and weakening yen as factors compelling it to acquire more Bitcoin. On July 16, Metaplanet purchased an additional 21.88 Bitcoins, worth ¥200 million ($1.4 million at the time) — an average price of ¥9.14 million ($57,600) per coin.

Plans to Tokenize Metaplanet Shares

Metaplanet is currently listed on the Tokyo Stock Exchange (TSE), which limits access for U.S. investors. The firm plans to tokenize Metaplanet shares on the Bitcoin layer-2 network Liquid. In May, Metaplanet experienced a remarkable surge in its shares, skyrocketing 158% in a single week and emerging as the highest gainer among all Japanese stocks.

Stock Surges 364% in Six Months

In the past six months, Metaplanet has seen its stock price rise 364%, trading at 743 yen ($5.08) on Thursday. On Monday, the Japanese stock market suffered its worst one-day drop since 1987. An adjustment by the Bank of Japan – raising rates on short-term government bonds from 0% to 0.25% – triggered a chain reaction that shook global markets.

Despite the market downturn, Metaplanet has revealed its intention to employ a range of capital market instruments strategically to bolster its Bitcoin reserves, mirroring MicroStrategy’s approach. In its recent earnings call, MicroStrategy reported that it has expanded its Bitcoin holdings to 226,500 bitcoins as of July 31. Since entering Bitcoin in April, Metaplanet has held approximately 246 Bitcoins worth around $13.4 million.

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