Japanese Firm Metaplanet Plans $11.3M Bitcoin Purchase via Bond Issue

The Tokyo Stock Exchange-listed Japanese business Metaplanet has revealed plans to sell off debt in order to bolster its Bitcoin (BTC) holdings. Metaplanet hopes to use this move as a hedge against economic risks, following in the footsteps of MicroStrategy, a U.S.-based business analytics firm renowned for its aggressive Bitcoin approach.

The company announced its intention to issue 1.75 billion yen (about $11.3 million) in one-year ordinary bonds on X on Monday. The bonds, which have an annual interest rate of 0.36%, will only be used to buy additional Bitcoin. Metaplanet’s increasing trust in cryptocurrencies as a financial hedge is demonstrated by this choice.

Building a Robust BTC Reserve

In April 2024, Metaplanet made its initial foray into Bitcoin investments in an effort to offset Japan’s growing debt and volatile currency. According to Bitcoin Treasuries, the corporation has since accumulated 1,018 BTC, which is worth $92.33 million. Metaplanet has also used options tactics to increase the value of its bitcoin holdings.

Despite its advancements, Metaplanet’s Bitcoin holdings are still small in comparison to MicroStrategy’s substantial holdings. The impressive 279,420 BTC that the U.S.-based company has amassed demonstrates its long-term dedication to Bitcoin as a store of value.

Metaplanet’s pivot toward cryptocurrency reflects a growing trend among corporations using Bitcoin to mitigate financial risks. With Japan’s debt levels and yen volatility posing challenges, the company views Bitcoin as a potential safeguard against these economic pressures.

This strategic initiative highlights the expanding role of Bitcoin in global corporate finance. While MicroStrategy leads the pack in terms of Bitcoin reserves, Metaplanet’s focused approach signals a broader acceptance of cryptocurrency in markets like Japan.