Japanese Investment Firm Metaplanet to Use Debt to Buy More Bitcoin
Company Follows MicroStrategy’s Model, Raises $61 Million to Accelerate Bitcoin Purchases
Japanese investment firm Metaplanet has announced a plan to use debt to buy more Bitcoin, mirroring the model of American firm MicroStrategy, the top corporate BTC holder, despite recent pushback from shareholders.
The company said Friday that it would issue 5 billion yen ($31.9 million) in bonds to buy more of the cryptocurrency. Just on Tuesday, the company had announced another bond issuance to fund its Bitcoin strategy.
Total Funding for Bitcoin Purchases Now Stands at Nearly $61 Million
This brings the total amount of money raised to buy Bitcoin to nearly $61 million.
*Metaplanet to issue 5.0 billion yen in Ordinary Bonds to Accelerate Bitcoin Purchases; Repayment to be made from Warrant Exercise Proceeds*
pic.twitter.com/9Sr6a5kDkD— Metaplanet Inc. (@Metaplanet_JP) December 20, 2024
However, on Tuesday, the share price of the investment firm tanked, showing that investors were perhaps more skeptical over the Bitcoin strategy. Metaplanet announced at the time that it was “officially a Bitcoin treasury company,” which now recognizes its “responsibility as a pioneer in the country’s Bitcoin ecosystem.”
Metaplanet’s Stock Price Plunges Following Announcement
Metaplanet’s stock is currently priced at $23 per share after dipping nearly 3% today and over 12% this week.
Metaplanet, a publicly-traded company listed on the Tokyo Stock Exchange, is following in the footsteps of MicroStrategy by putting Bitcoin on its balance sheet. It bought the cryptocurrency back in April with a trade valued at 1 billion yen.
Metaplanet Dubbed Asia’s Answer to MicroStrategy
The company has since been dubbed Asia’s answer to MicroStrategy, the largest public holder of Bitcoin. Software firm turned “Bitcoin treasury company” MicroStrategy currently holds 423,650 BTC, valued at over $41 billion.
Bitcoin Price Fluctuates
Bitcoin touched a new all-time high on Tuesday of $108,135, according to CoinGecko, surging double digits over a seven-day period. However, it has since plunged following a more hawkish-than-expected Wednesday speech from Federal Reserve Chairman Jerome Powell about future interest rates.
The coin is currently trading for $96,846 after dropping as low as $92,245, Friday morning New York time.
Conclusion
Metaplanet’s decision to use debt to buy more Bitcoin is a significant move in the cryptocurrency market, particularly in Japan. The company’s stock price may be affected by the announcement, but its commitment to investing in Bitcoin is a promising sign for the future.
FAQs
What is Metaplanet’s plan to buy more Bitcoin?
Metaplanet will issue 5 billion yen ($31.9 million) in bonds to buy more Bitcoin.
How much money has Metaplanet raised to buy Bitcoin?
The company has raised nearly $61 million to buy Bitcoin.
What is MicroStrategy’s current holding of Bitcoin?
MicroStrategy currently holds 423,650 BTC, valued at over $41 billion.
What is the current price of Bitcoin?
The current price of Bitcoin is $96,846.
Why did Metaplanet’s stock price tank?
Metaplanet’s stock price tanked due to investor skepticism over the company’s Bitcoin strategy.
