Japanese investment company Metaplanet Inc. is taking a bold step to expand its Bitcoin ($BTC) holdings.
The company announced on Monday that it plans to issue one-year bonds worth 1.75 billion yen (about $11.3 million).
The funds raised will be used to buy more Bitcoin, as part of its strategy to make cryptocurrency a key part of its financial reserves.
The bonds will carry an annual interest rate of 0.36% and are set to mature on November 17, 2025.
According to Metaplanet, these bonds are exclusively allocated to EVO FUND, a major investor in the company.
Although the bonds are not directly backed by Bitcoin, they are secured by real estate. Specifically, the bonds are tied to the land and building of Hotel Royal Oak Gotanda in Tokyo, which is owned by Metaplanet’s subsidiary, Wen Tokyo.
This property has a first-priority mortgage, providing protection for bondholders if the company faces financial issues.
Metaplanet’s CEO, Simon Gerovich, shared his excitement about the move on social media, stating, “More bitcoin purchases incoming”.
This method of issuing bonds to fund Bitcoin purchases is similar to strategies used by other companies like MicroStrategy. The US-based firm, led by Michael Saylor, is known for leveraging debt to increase its Bitcoin holdings.
MicroStrategy currently holds 279,420 $BTC, worth approximately $26 billion, making it the largest corporate Bitcoin holder worldwide.
Building a strong Bitcoin reserve
Metaplanet has been actively buying Bitcoin throughout 2024. Its holdings now stand at 1,018 $BTC, worth around $93.5 million at today’s prices. This makes the company one of the largest corporate Bitcoin holders in Asia.
The company began its Bitcoin journey in April 2024, with its first purchase of 117.7 $BTC for $7.19 million. In the months that followed, it secured a $6.8 million loan from MMXX Ventures to fund additional Bitcoin purchases. By October, Metaplanet had added another 156 $BTC for $10 million.
The decision to use Bitcoin as a strategic treasury reserve was announced in May 2024. Since then, Bitcoin has become a key part of the company’s financial plan, accounting for nearly 19% of its total market value.
Metaplanet’s Bitcoin strategy has also had a significant impact on its stock price. The company’s shares have risen an astonishing 1,146% this year, closing at 1,994 yen on Monday. In contrast, Japan’s Nikkei 225 index fell by 1.09% on the same day.
Attracting investors with new programmes
In addition to buying Bitcoin, Metaplanet is working on ways to attract and reward its shareholders. The company recently launched a Shareholder Benefits Programme aimed at building stronger relationships with investors.
This programme, which will start in December 2024, offers several rewards. Shareholders can participate in Bitcoin lotteries, get discounted tickets to cryptocurrency events, and enjoy exclusive experiences connected to the Bitcoin ecosystem.
These benefits are designed to make Metaplanet’s stock more appealing for long-term investors.
The move highlights Metaplanet’s commitment to not only growing its Bitcoin reserves but also engaging with its investors. By offering unique perks, the company hopes to stand out in the market and encourage people to hold onto its shares for the long run.
Metaplanet’s aggressive Bitcoin strategy is also part of a broader trend among companies around the world. Many businesses see Bitcoin as a way to diversify their reserves and protect against economic uncertainty.
While Metaplanet’s 1,018 $BTC holdings are significant, they are still far behind the likes of MicroStrategy and Marathon Digital, which owns 27,562 $BTC. However, Metaplanet is making its mark as a major Bitcoin player in Asia.
This latest bond issuance is another step in its plan to expand its Bitcoin portfolio and solidify its position in the cryptocurrency market.
By combining innovative financial strategies and unique investor programmes, Metaplanet is demonstrating its confidence in the future of Bitcoin.
