Fresh off its most recent Bitcoin purchase, Japanese investment firm Metaplanet is raising substantial funds through a bond issue designed to bolster its growing cryptocurrency treasury. In a press statement released on May 9, the firm announced a $21.25 million issuance of “0% Ordinary Bonds,” clarifying that the raised funds will predominantly be allocated for further Bitcoin acquisitions.
Zero-coupon bonds, which typically do not offer interest to holders, are issued at a significant discount from their normative value. Upon maturity, investors receive the full face value, making them an intriguing option for organizations like Metaplanet looking to increase their capital without immediate cash flow obligations.
In addition to the bond issuance, Metaplanet’s board of directors voted to issue a 14th Stock Acquisition Rights to EVO Fund, an investment management firm registered in the Cayman Islands, set for redemption on November 7.
If Metaplanet successfully raises the full $21.25 million, it stands to acquire approximately 206 Bitcoin (BTC) at current prices, as highlighted by CoinGecko. The firm initially signaled its intent to invest in Bitcoin in April of the previous year, marking a strategic pivot in its investment portfolio.
BitcoinTreasuries.NET ranks Metaplanet as Asia’s largest public corporate holder of Bitcoin and places it 11th globally among corporate investors in the cryptocurrency. This designation underscores the firm’s commitment to expanding its digital asset portfolio.
Interestingly, Metaplanet’s stock (3350T) surged over 1,600% in the last year, trading at 511 Japanese yen (approximately $3.50) according to Google Finance. This trajectory reflects growing investor confidence in the firm’s Bitcoin strategy.
Metaplanet’s Expanding Crypto Strategy
In a recent disclosure dated May 7, the Tokyo-listed firm revealed it acquired 555 Bitcoin for $53.4 million at an average price of $96,134. Currently, Metaplanet holds a total of 5,555 BTC, which it procured for an aggregate $481.5 million at an average cost of $86,672.
Addicted to its Bitcoin strategy, Metaplanet announced on the same day that it would issue an additional $25 million in zero-coupon ordinary bonds to fund further Bitcoin purchases. Furthermore, on May 1, Metaplanet disclosed plans to establish a wholly-owned U.S. subsidiary, Metaplanet Treasury, in Florida, with ambitions to raise $250 million to further its Bitcoin initiative.
This corporate maneuver isn’t isolated; a growing cohort of companies is increasingly adopting Bitcoin as a part of their treasury strategies. For instance, Strive Asset Management declared its intention to evolve into a Bitcoin treasury company on May 7, and GameStop Corporation recently completed a convertible debt offering, raising $1.5 billion to allocate towards Bitcoin acquisitions.
As the landscape of institutional Bitcoin holdings evolves, Metaplanet’s efforts may set a precedent that other corporations will follow, amplifying the movement toward Bitcoin as a key asset in corporate finance. Stay tuned for further updates on Metaplanet’s journey and further developments in corporate cryptocurrency investments.
