Key Points
- Japanese company Metaplanet Inc. plans to buy $6.3 million worth of Bitcoin through bond issuance.
- The purchase will be funded by the capital raised from the upcoming round of bond issuance.
Metaplanet Inc., a Japanese investment company, experienced a 12% surge in its stock price on Monday morning. This followed the announcement that the firm will buy Bitcoin worth 1 billion yen ($6.26 million) through capital raised from a forthcoming bond issuance.
Details on the Bond Issuance
In their Monday statement, the Tokyo-based company revealed plans to buy more Bitcoin. This will be done by issuing the second series of ordinary bonds with guarantees. The bonds, amounting to 1 billion, will have an annual interest rate of 0.5%. They are set to mature on June 25, 2025, with the payment date being June 26, 2024. The company confirmed that the funds raised will be used to purchase Bitcoin.
The company’s stock rose by about 12.2% during the morning trading session. This latest move to issue bonds for Bitcoin purchase comes after the firm bought an additional 250 million yen worth of Bitcoin earlier in the month. On June 11, the company reported holding about 141.07 BTC.
Bitcoin as a Strategic Treasury Reserve Asset
In May, Metaplanet announced that it had begun to adopt Bitcoin as its strategic treasury reserve asset. This decision was a direct response to the ongoing economic pressures in Japan. These include high levels of government debt, long periods of negative real interest rates, and a consequently weak yen.
