Key Points
- Metaplanet Inc. plans to buy $6.26 million worth of Bitcoin for long-term holding.
- The firm will issue 1 billion yen worth of bonds to raise the necessary money.
According to the latest reports, investment and consulting firm Metaplanet Inc. is planning to issue 1 billion yen worth of bonds in order to raise money and buy Bitcoin.
The BTC acquisition would equal over $6.26 million at current prices.
In a notice issued today, the board at Metaplanet agreed to the move and said that BTC would be for long-term holding. Also, according to the official notes, the coins are exempt from end-of-term market value assessment taxation.
The firm also noted that other Bitcoin holdings will be evaluated at market value each quarter, and the valuation gains or losses will be recorded under non-operating income or expenses in the income statement.
A long-term Bitcoin holding policy
Metaplanet said that, while the basic policy is to hold Bitcoin for the long term, if they use BTC for operations or other purposes, the corresponding balance will be recorded as current assets on the balance sheet.
The note revealed that the funds for this purchase will be allocated from the capital raised via the issuance of the second series of ordinary bonds with guarantee, as disclosed separately in the “Announcement on the Issuance of the Second Series of Ordinary Bonds (with Guarantees).”
In the separate note, the firm shared that the bonds would pay an annual rate of 0.5%. The payment date is June 26, 2024, and the redemption date is June 25, 2025.
Metaplanet’s planned purchase would add to its 141 BTC stash
The planned BTC purchase of the company would add to the existing 141.07 BTC worth about $8.8 million at current prices that the firm already has in its stash.
Metaplanet bought 117 BTC back in May saying that it was adopting a Bitcoin-first, Bitcoin-oly approach to its treasury. The move was reportedly a direct response to sustained economic pressure in Japan.
Metaplanet’s Bitcoin approach led to a comparison to the US MicroStrategy, another company that has been buying and holding Bitcoin.
