Japanese investment firm Metaplanet Inc. has secured a $6.8 million loan to increase its Bitcoin holdings, reflecting its bullish stance on the cryptocurrency’s future. The announcement comes amid strategic financial maneuvers and market volatility.
Metaplanet Inc., a Tokyo-listed investment firm, has taken out a 1 billion yen ($6.8 million) loan with a remarkably low annual interest rate of 0.1%. The firm announced today that the majority of these funds will be directed toward purchasing additional Bitcoin, underscoring its confidence in the cryptocurrency’s long-term value.
In a statement, Metaplanet outlined its strategy: “We plan to allocate nearly the entire loan amount to purchasing Bitcoin. Our basic policy is to hold Bitcoin long-term; however, if we utilize Bitcoin for operations, the applicable Bitcoin balance will be recorded as a current asset on the balance sheet.”
This announcement follows Metaplanet’s Tuesday disclosure that it will conduct a 10 billion yen ($68.4 million) stock acquisition rights allotment. The company stated that a substantial portion of these funds will also be used to acquire Bitcoin, reinforcing its commitment to the cryptocurrency.
“Holding Bitcoin as a core asset aligns with Metaplanet’s long-term growth strategy and is expected to significantly enhance the company’s profitability and corporate value,” the firm said.
Metaplanet’s move to adopt Bitcoin as a strategic treasury reserve asset was first revealed in May, driven by Japan’s economic challenges, including high government debt, prolonged negative real interest rates, and a weak yen.
The company’s stock surged 20.2% on Thursday, following a tumultuous week in the Japanese stock market. On Monday, the Nikkei 225 index experienced its worst decline since 1987, plummeting 12.4%. However, the index closed down 0.74% today.
Metaplanet’s aggressive Bitcoin acquisition strategy highlights its belief in the cryptocurrency’s potential to bolster its financial position amidst ongoing economic uncertainties in Japan.
