Metaplanet Secures $6.8 Million Loan to Boost Bitcoin Holdings

By obtaining a $6.8 million loan, Tokyo Exchange-listed business Metaplanet has made a big move to enhance its holdings of Bitcoin. The lender, MMXX Ventures, owns shares in Metaplanet, according to information released on August 8 via X (previously Twitter), resulting in a special financial arrangement between the two companies. The loan has a six-month term and a 0.1% yearly interest rate.

The six-month loan with no security will be paid back in full at the end of the term. Should Metaplanet choose to buy Bitcoin at the going rate, which is roughly $57,170 per unit, the loan might enable the purchase of roughly 119 units. This action is in line with Metaplanet’s overarching objective to increase its bitcoin reserves.

Building a Stronger Bitcoin Position

Just days before announcing the loan, Metaplanet disclosed its plan to raise $70 million through a stock rights offering. Over 80% of this capital is earmarked for purchasing Bitcoin, demonstrating the company’s strong belief in the long-term potential of the cryptocurrency. Currently, Metaplanet holds 246 BTC, valued at just over $14 million. The company aims to hedge its long-term growth by leveraging Bitcoin’s potential appreciation, with some analysts predicting the cryptocurrency could reach $1 million per BTC within the next decade.

The method employed by Metaplanet is similar to that of MicroStrategy, a US-based business well-known for its aggressive approach to Bitcoin accumulation. Currently holding more than 79,000 Bitcoin, worth roughly $4.5 billion, is MicroStrategy. Michael Saylor, the CEO of MicroStrategy, disclosed on August 7 that he personally possesses Bitcoin valued at over $1 billion, with the possibility of owning up to 20,000 BTC.

The loan and stock rights sales by Metaplanet show a deliberate attempt to improve its standing in the quickly developing cryptocurrency sector. Metaplanet is putting itself in a position to benefit from future gains as the cryptocurrency market develops by growing its reserves of Bitcoin.