Metaplanet to Issue 1 Billion Yen in Bonds for Bitcoin Purchase

Tokyo-based investment and consulting firm Metaplanet announced plans to issue 1 billion yen ($6.26 million) worth of bonds to buy Bitcoin. In a June 24 notice, the firm confirmed its board’s approval for the move, specifying that the Bitcoin BTC tickers down $61,387 would be “for long-term holding.” A separate notice stated the bonds would pay an annual rate of 0.5%.

Bitcoin’s Market Movements

Bitcoin recently hit a 40-day low, dropping 2.6% to $62,733 after nearly reaching $72,000 in early June, according to CoinGecko. If Metaplanet purchases 1 billion yen worth of Bitcoin today, they would acquire nearly 100 BTC, approximately 99.84 BTC.

In reaction to ongoing economic hardship in Japan, Metaplanet initiated a “Bitcoin-first, Bitcoin-only approach” by purchasing 117 BTC for the first time in mid-May. In June, Metaplanet disclosed its most recent holdings report, which showed an average purchase price of 10.28 million yen, or $65,365, per Bitcoin. This suggests that the company’s present approach is unsustainable.

Similarities have been made between Metaplanet and MicroStrategy due to its aggressive BTC purchase and subsequent stock spike. According to Bitbo, the U.S. software corporation has the biggest Bitcoin holdings of any publicly traded company, with 214,400 BTC valued at $13.4 billion.

Metaplanet shares rose 11.5% on Monday, trading at 96 yen ($0.60). This continues the over 500% gain its stock price has seen this year, per Google Finance.