Metaplanet Inc. Invests ¥1 Billion in Bitcoin through New Bond Issuance

• Metaplanet Inc. issues ¥1 billion bonds with 0.5% interest to invest in Bitcoin amid yen volatility.
• Metaplanet’s Bitcoin purchase, funded by bond issuance, aims to hedge against currency risks.
• Metaplanet’s Bitcoin investment reflects the growing institutional adoption of digital assets for diversification.

Metaplanet Inc., a prominent player in the financial sector, has announced a significant investment move. The company’s board of directors has authorized the purchase of Bitcoin worth 1 billion yen. This investment will be funded by the proceeds from a new bond issuance. Metaplanet made this announcement through a series of tweets, highlighting its strategic decision to venture deeper into the cryptocurrency market.

On June 24, 2024, Metaplanet revealed its plan to issue the second series of ordinary bonds, amounting to 1 billion yen. These bonds come with an annual interest rate of 0.5%. The funds raised from this issuance will be allocated specifically for purchasing Bitcoin. This strategic move is part of Metaplanet’s broader investment strategy to diversify its assets and hedge against traditional market volatility.

The bond issuance detailed the terms and conditions of the bonds. Each bond is valued at ¥50 million, and the total issuance amounts to ¥1 billion. The bonds will be redeemed at a rate of ¥100 per bond, with a redemption date set for June 25, 2025. The funds raised from this issuance will be used exclusively for purchasing Bitcoin, as stated in their official release.

The decision to invest in Bitcoin comes amid a period of significant yen volatility. By allocating funds to Bitcoin, Metaplanet aims to leverage the cryptocurrency’s potential as a stable store of value. Bitcoin’s reputation as a hedge against fiat currency devaluation makes it an attractive investment. This move aligns with the growing trend of institutional investors incorporating digital assets into their portfolios.

Metaplanet’s investment strategy involves holding Bitcoin as a long-term asset. The company plans to record the Bitcoin holdings at cost for long-term investments. This approach exempts them from end-of-term market value assessment taxation. Additionally, any Bitcoin holdings intended for short-term gains will be evaluated at market value each quarter. The valuation gains or losses will be recorded under non-operating income or expenses in the income statement.

According to Google Finance, Metaplanet Inc. (TYO: 3350) has shown consistent growth in its financial performance, which supports its ability to make significant investments. As of June 24, 2024, the company’s stock price rose by 9.20%, closing at ¥95.00, up from the previous close of ¥87.00. This surge reflects positive market sentiment towards Metaplanet’s financial strategies and its bold venture into Bitcoin investments. The company’s market capitalization at press time stands at 16.55 billion yen, indicating strong investor confidence.