Tokyo-based investment and consulting firm Metaplanet Inc. has announced plans to issue a 1 billion yen ($6.26 million) bond to raise funds to buy Bitcoin.
The company announced on June 24 that Metaplanet’s board of directors has approved the move and decided to hold Bitcoin for the long term. The bond will carry an annual interest rate of 0.5% and will mature on June 25, 2025.
*Metaplanet issues ¥1 billion in 0.5% bonds; proceeds to fund additional purchases of $BTC* pic.twitter.com/qKZQKHZ6MS
— Metaplanet Inc. (@Metaplanet_JP) June 24, 2024
This is not the first time Metaplanet has invested in Bitcoin. The company owns 141.0727 BTC after its last transaction on May 28. The next Bitcoin purchase will bring their total Bitcoin holdings to around 240 BTC.
These moves by Metaplanet are aimed at mitigating risks due to Japan’s difficult financial landscape. Japan’s net debt-to-GDP ratio is set to be the highest among the G7 countries by 2023, causing the yen to be volatile.
Currently, with Bitcoin at $62,338, the company is not making any profit from their strategy as the average purchase price per Bitcoin is 10.28 million yen (about $65,365). However, with Bitcoin prices in decline, it creates an opportunity to buy Bitcoin at a cheaper price and wait for the market to gradually recover.
Metaplanet’s decision is part of a broader strategy to cope with continued economic pressure and reduce financial risks, similar to MicroStrategy’s strategy. This could be a golden time to invest in Bitcoin and wait for a recovery.
