Japanese Investment Firm Metaplanet Secures $6.8M Loan to Expand Bitcoin Holdings

QUICK BITE

• Metaplanet secures ¥1 billion ($6.8 million) loan to purchase Bitcoin, reinforcing its “Bitcoin-first” strategy.
• Metaplanet plans an additional ¥8.5 billion ($58.76 million) in Bitcoin investment through a new stock offering to shareholders.
• The company cites Japan’s economic conditions, including high debt and weak yen, as reasons for adopting Bitcoin as a primary reserve asset.

Japanese investment firm Metaplanet announced today that it has secured a loan of ¥1 billion ($6.8 million). The company plans to use the entire loan to buy Bitcoin, a decision approved at their recent Board of Directors meeting.

The loan from MMXX Ventures, a Metaplanet shareholder, has a 0.1% annual interest rate and a six-month term starting on Aug. 8. The company stated that the loan will be repaid in a lump sum.

If the entire $6.8 million loan is used to buy Bitcoin, the firm could purchase an additional 118.5 Bitcoin at current market prices.

Additionally, on August 6, Metaplanet announced its plan to invest about 8.5 billion yen ($58.76 million) in Bitcoin through a new stock offering. The company aims to raise a total of 10 billion yen ($69.13 million) by issuing stock acquisition rights to all common shareholders.

This decision was made at 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.

Reports suggest that Metaplanet is reinforcing its “Bitcoin-first” strategy announced in May 2024 by allocating a large portion of the raised funds to Bitcoin. This strategy aims to make the company a leading Bitcoin-holding public company in Japan, mitigate risks from Japan’s economic conditions, and maximize shareholder value. 

According to the company’s disclosure, Metaplanet cited Japan’s high debt levels, persistent negative interest rates, and weakening yen as reasons for turning to cryptocurrency. By designating Bitcoin as a primary reserve asset, Metaplanet aims to protect its balance sheet from the effects of inflation.

Moreover, in early July, Metaplanet acquired 42.47 BTC, valued at approximately 400 million Japanese Yen (around $2.3 million) despite a drop in Bitcoin prices. Soon after, the company again bought 21.877 Bitcoins at an average price of 9,142,021 yen each.