Metaplanet Jumps by 12% After Disclosing Plans to Buy More BTC

Japanese investment firm Metaplanet has announced plans to purchase additional Bitcoin worth 1 billion yen ($6.26 million) using the capital raised through an upcoming round of bond issuance. This initiative is part of the company’s broader strategy to position itself at the forefront of financial innovation.

Following this announcement, the company saw its stock price jump by over 12% in Tokyo trading hours.

Metaplanet Plans Bitcoin Acquisition

In a Monday statement, the company revealed that it’s Board of Directors has resolved to purchase more Bitcoin by issuing the second series of ordinary bonds with guarantees.

According to another announcement, the bonds worth 1 billion yen ( about $6.2 million) are set to come with an annual interest rate of 0.5%, and will mature on June 25, 2025, according to a separate announcement. The payment date for the bonds will be made the following day, June 26.

Metaplanet aims to hold onto its Bitcoin for the long haul. However, if they end up using it for day-to-day operations or other needs, they’ll list an equal amount as current assets on their books.

Metaplanet Bitcoin Adventure

The Tokyo-listed company began it’s Bitcoin purchase in April to reduce yen exposure and offer Japanese investors crypto access with a preferential tax structure. It officially adopted BTC as a reserve asset in May, and purchased Bitcoins on April 23, May 10 and June 11.

Moreover, Metaplanet disclosed its commitment to using a broad range of capital market instruments to bolster its Bitcoin reserves in May.

“The move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen,” the company said then.

The company’s strategy mirrors that of MicroStrategy, the largest corporate Bitcoin shareholder. However, its BTC holdings are far below those of MicroStrategy which holds more than 1% of Bitcoin’s supply.

Per data from Bitcointreasuries, Metaplanet holds 141 BTC as of Monday and is currently the biggest corporate holder of bitcoin in Japan.

Metaplanet latest move reflects a growing trend of institutional investment in cryptocurrencies. In a similar scenario, Healthcare film Selmer Scientific made a significant purchase of $40 million worth of Bitcoin in May.