Metaplanet to issue $6.26M in bonds for Bitcoin purchase, shares up 12%
Metaplanet announced plans to issue 1 billion yen ($6.26 million) in bonds to fund additional Bitcoin purchases, according to a June 24 notice.
Following the news, Metaplanet shares surged 12% to 96 yen ($0.60), continuing an uptrend that has seen it gain over 500% this year, according to Google Finance data.
Bond details
The company’s board has approved the decision, and the Bitcoin is intended for long-term holding. It stated:
“The funds for this purchase will be allocated from the capital raised through the issuance of the second series of ordinary bonds (with guarantees).”
These bonds will be issued to EVO FUND at an annual interest rate of 0.5% and will mature on June 25, 2025. The payment date is set for June 26, 2024.
Metaplanet said it will record its long-term Bitcoin holdings at acquisition cost, exempt from end-of-term market value assessments taxations. Other Bitcoin holdings will be evaluated quarterly at market prices, with any gains or losses reported under non-operating income or expenses. It furthered:
“While our basic policy is to hold Bitcoin for the long term, if we use Bitcoin for operations or other purposes, the corresponding Bitcoin balance will be recorded as current assets on the balance sheet.”
This bond issuance follows Metaplanet’s recent purchase of 250 million yen worth of Bitcoin earlier this month. At the time, CryptoSlate reported that the purchase increased the company’s total Bitcoin holdings to 141.07 BTC, making it one of the world’s top 30 corporate holders of Bitcoin.
In May, Metaplanet announced Bitcoin as its strategic treasury reserve asset. The company cited high government debt, prolonged negative real interest rates, and a weak yen as reasons for this strategic move.
Meanwhile, Metaplanet’s current moves are straight from the playbook of MicroStrategy, the largest corporate holder of the top digital asset. Last week, the Michael Saylor-led company purchased around 12,000 BTC for $786 million, pushing its total holdings to 226,631 BTC, valued at almost $15 billion.
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