Metaplanet Raises ¥1.75 Billion in Bonds to Expand Bitcoin Holdings

  • Metaplanet raises ¥1.75 billion through bonds to boost Bitcoin holdings, showcasing growing confidence in digital assets.
  • Fully guaranteed bonds by Metaplanet align with their strategic plan to scale Bitcoin reserves amid competitive market dynamics.
  • MicroStrategy’s $42B Bitcoin plan outpaces Metaplanet’s efforts, highlighting a fierce race in corporate Bitcoin adoption.

Metaplanet Inc. announced the issuance of its 3rd Series of Ordinary Bonds, raising ¥1.75 billion. Each ¥43.75 million bond carries a 0.36% annual interest rate, with payment due on November 18, 2024, and redemption on November 17, 2025. As a sign of the company’s increasing interest in digital assets, the profits from this transaction will be utilized to fund Bitcoin acquisitions. Redemption will occur in full at ¥100 per ¥100 face value upon maturity.

Key Bond Details and Financial Strategy

The bonds are fully guaranteed for principal, interest, and related obligations under a contract involving Metaplanet’s Representative Director, Simon Gerovich. Although no direct collateral exists, the Hotel Royal Oak Gotanda property serves as security through a first-priority mortgage. 

The property is owned by Metaplanet’s subsidiary, Wen Tokyo Inc., ensuring creditor protection. Additionally, the issuance complies with Articles 702 and 169 of the Companies Act. Payments for interest and principal will be handled at Metaplanet’s Tokyo office, and no bond administrator is required.

Proceeds from the bond issuance emphasize Metaplanet’s commitment to expanding its Bitcoin holdings. The company currently holds 1,018.17 BTC, significantly trailing MicroStrategy’s 279,420 BTC. MicroStrategy, popular for its aggressive Bitcoin strategy since 2020, consistently outpaced competitors in accumulation. Its Bitcoin reserves, valued at $25.6 billion, surpass Nike Inc. and IBM Corp.’s cash holdings.

Competitive Landscape and Future Outlook

MicroStrategy’s 21/21 Plan aims to purchase $42 billion in Bitcoin over three years, allocating $10 billion by 2025, $14 billion by 2026, and $18 billion by 2027. To achieve this, MicroStrategy plans to secure $21 billion from equity and $21 billion through fixed-income securities.

Metaplanet’s strategy demonstrates a growing trend among firms adopting Bitcoin as a treasury asset. However, it still lags behind market leaders like MicroStrategy. Besides securing funding through bonds, Metaplanet’s calculated approach highlights its intent to scale its digital asset portfolio.

The post Metaplanet Raises ¥1.75 Billion in Bonds to Expand Bitcoin Holdings appeared first on Crypto News Land.


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