Japanese company will issue debt to buy millions in bitcoin
Key facts:
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The bonds to be issued will pay an annual rate of 0.5% and will mature on June 25, 2025.
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Following the announcement, Metaplanet shares rose 12%.
The Japanese investment firm Metaplanet announced that will buy bitcoin (BTC) worth 1 billion yen, the equivalent of 6 million dollars. This operation will be financed through the issuance of debt bonds.
Through a statement, the Board of Directors of the firm listed on the Tokyo Stock Exchange detailed that “the basic policy is to hold BTC in the long term.” “If it is used for operations or other purposes, the corresponding balance of BTC will be recorded as a current asset on the balance sheet,” they indicated from Metaplanet.
In the “Announcement on the issuance of the second series of ordinary bonds (with guarantees)”, the firm indicated that these instruments have an annual interest rate of 0.5% and will mature on June 25, 2025. Meanwhile, it was confirmed that the bond payment date is June 26, 2024.
As seen in the graph, after the announcement Metaplanet shares were trading at 96 yen, equivalent to $0.60. This is an increase of 12%.
As CriptoNoticias already reported, Metaplanet reported on May 13, 2024 that it adopted BTC “as a strategic treasury reserve asset,” after analyzing “the challenges and opportunities of the current global financial landscape.”
At that time, the investment firm explained that this is a “strategic change in treasury management” and is a “direct response” to the sustained economic pressures in Japan. In more detail, the high levels of public doubt, the long periods of negative interest rates and the weakness of the Japanese yen against other currencies. The board also highlighted:
“BTC offers a store of value that has appreciated, and may continue to appreciate, against traditional fiat currencies.”
Metaplanet, investment company
According to BitcoinTreasuries.net, Metaplanet accumulates 141 BTC as of June 10. This figure is currently equivalent to 9 million dollars.
A strategy inspired by Michael Saylor
Metaplanet is not the first company that decides to issue debt through bonds to obtain funds and invest them in the digital currency created by Satoshi Nakamoto.
As reported by CriptoNoticias, on June 13, the American company MicroStrategy announced its intention to raise funds for around $500 million to continue purchasing BTC.
The objective of the company led by Michael Saylor is to obtain this capital through a private bond offering senior convertibles maturing in 2032, which will be sold to qualified institutional investors.
These assets allow the holder of the bond to exchange it for MicroStrategy shares. Meanwhile, the rating “senior” gives them priority of payment by the company over other debts in the event of liquidation or bankruptcy.
It is worth remembering that, on March 19, 2024, the firm confirmed the purchase of 9,245 BTC for a value of approximately $623 million. This was possible thanks to this same convertible bond issuance proposal.
MicroStrategy so far accumulates 226,331 BTC, valued at about 26,318 million, according to data from BitcoinTreasuries.net. This means the publicly traded company with the most bitcoin in its treasury.
