Japan’s Metaplanet Secures $6.8M Loan to Buy More BTC

Japanese venture capital firm Metaplanet has taken a 1 billion yen (approximately $6.8 million) loan to boost its bitcoin acquisition strategy.

Metaplanets to Increase Bitcoin Holdings

In a statement, the company revealed that it had decided to secure the $6.8 million loan after a Board of Directors meeting earlier today. Metaplanet stated that it got the collateral-free loan from one of its shareholders, MMXX Ventures, an investment firm based in the British Virgin Islands.

The company explained that it selected MMXX Ventures as a lender due to its background of supporting Metaplanet and “enabling rapid loan execution.”

The loan has a 0.1% annual interest rate and a six-month term starting on August 8, the date of execution. Metaplanet revealed that it plans to purchase bitcoin using the entire amount. The company added that it expects to repay the loan in a lump sum after the six-month term elapses.

“While the loan will incur interest, we expect its impact on our consolidated results for the fiscal year ending December 2024 to be minimal. We plan to allocate nearly the entire loan amount to purchasing Bitcoin,” the company stated.

“Asia’s MicroStrategy” Doubles Down on Bitcoin Acquisition

Metaplanet’s loan announcement comes just two days after the company disclosed plans to raise 10 billion yen (approximately $68.3 million) through a stock rights offering. The investment firm noted that the majority of the funds raised, over 80%, will be used to purchase bitcoin.

Earlier in May, Metaplanet announced that it would adopt bitcoin as its treasury reserve asset, in a move similar to MicroStrategy’s bitcoin acquisition plan. The company revealed at the time that its bitcoin strategy will enable it to hedge against worsening economic conditions in Japan as well as the fast-depreciating Japanese yen.

Since then, Metaplanet has consistently added bitcoin to its portfolio, quickly earning it the nickname “Asia’s MicroStrategy.” The firm’s total Bitcoin holding is currently sitting at 246 BTC, worth over $14 million at press time.

“Holding Bitcoin as a core asset aligns with Metaplanet’s long-term growth strategy and is expected to significantly enhance the company’s profitability and corporate value,” the firm said.