Originally published on: August 08, 2024
Japanese investment firm Metaplanet has recently secured a substantial 1 billion Japanese yen loan from one of its shareholders, MMXX Ventures, to increase its Bitcoin holdings. The loan comes with a minimal 0.1% interest rate per annum and has a six-month term starting on Aug. 8, with repayment in a lump sum.
With the loan amounting to $6.8 million, if the entire sum were allocated to Bitcoin purchases, Metaplanet could acquire an additional 118.5 Bitcoin at current market prices. This move follows the company’s announcement of plans to raise $70 million through a stock rights offering, with a significant portion earmarked for Bitcoin investments.
Metaplanet’s strategic shift towards bolstering its Bitcoin reserves mirrors a similar approach taken by companies like MicroStrategy. The firm, previously struggling as a “zombie” company, is now leveraging Bitcoin as an “apex monetary asset” to secure long-term success amid economic challenges.
Since its first Bitcoin investment in April, Metaplanet has acquired 246 Bitcoin worth $13.95 million through multiple purchases. Despite a 12.8% decline from its average purchase price of $65,145, the company’s stock price has seen a 290% increase since announcing its Bitcoin strategy in April.
While recent market volatility, including Bitcoin’s 10% drop on “Black Monday,” has impacted Metaplanet’s stock performance, the company’s ambitious Bitcoin investment strategy signals a promising trajectory for its future growth and sustainability.
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