Metaplanet to Resume Bitcoin Purchase, Secures 1 Billion yen Loan for the Purpose

Metaplanet, a publicly traded Japanese investment company, has revealed its plans to resume acquiring more Bitcoins. To this initiative, the firm has secured a 1 billion yen ($6.8 million) loan from one of its investors to continue its venture into the digital asset. Recall that the firm previously completed a 1 billion yen BTC investment in July as part of its Bitcoin investment strategy.

Notably, this update comes amid a significant BTC downtrend that has seen the price of the flagship asset crash below $60k. Metaplanet bets large on the future outlook of the cryptocurrency, igniting hopes across the market and inspiring other investors to buy the dip.

Metaplanet Takes out Loan to Buy Bitcoin

In an August 8 statement issued by the company, Metplanet revealed that it had resolved to secure a loan of 1 billion yen after a Board of Directors meeting held earlier today. The loan will be secured from one of its shared holders MMXX Ventures, a British Virgin Island-based investment company.

Notably, the loan comes with an interest rate of 0.1% per annum and a term of 6 months from the date of execution (Aug 8). Also, Metaplanet revealed that it will pay back the loan in a “lump sum.” According to the statement, Metaplanet selected the lender because of its background of supporting the company and enabling rapid loan execution.

*Metaplanet secures ¥1 billion 0.1% APR loan; proceeds to fund additional purchases of $BTC* pic.twitter.com/seN6YdrnLO

— Metaplanet Inc. (@Metaplanet_JP) August 8, 2024

“While the loan will incur interest, we expect its impact on our consolidated results for the fiscal year ending December 2024 to be minimal. We plan to allocate nearly the entire loan amount to purchasing Bitcoin,” the statement reads.

Metaplanet reemphasized its confidence in the long-term value of Bitcoin, saying “Our basic policy is to hold Bitcoin long-term,” however noting that if at any point Bitcoin is used to fund operations, it will be recorded as a current asset on the balance sheet.

Interestingly, this decision comes about 48 hours after the firm announced its plans to raise about $70 million through issuing stock rights. Out of this total sum, $58 million will be diverted toward Bitcoin purchases.

Metaplanet’s Bitcoin History

Meanwhile, the company, sometimes referred to as the “Microstrategy of Japan” has taken a similar route with the American investment giant. Metaplanet began its investment in Bitcoin as a way to hedge against the collapsing Japanese yen.

Its CEO, Simon Gerovich, said at the recently concluded Bitcoin Conference that the company was in an unhealthy financial status and decided to turn to Bitcoin as a strategy to improve its future earnings.

At this time, the Japanese investment company has amassed 246 Bitcoin, valued at approximately $14 million between April 23 to July 22, 2024, according to Bitcoin Treasuries data. Ultimately, Metaplanet’s stock price has jumped about 290% since it revealed its Bitcoin plan in April.