Metaplanet is not slowing down with its pursuit of a massive Bitcoin treasury as it plans to buy more with debt security.
Metaplanet, popularly tagged Asian MicroStrategy, plans to proceed with a debt sale to boost its Bitcoin BTC $105 563 24h volatility: 0.1% Market cap: $2.10 T Vol. 24h: $16.47 B bag. The Tokyo-based financial firm announced the move on X on Monday. According to the announcement, the debt sale involves one-year ordinary bonds with a guarantee totaling 1.75 billion yen, equivalent to $11.3 million, for an annual interest rate of 0.36%.
Metaplanet Holds More than 1,000 Bitcoin
Noteworthy, all proceeds are meant for further Bitcoin acquisition, following the lead of MicroStrategy Inc (NASDAQ: MSTR).
So far, Metaplanet has snapped up more than 1,000 Bitcoin during an eight-month buy period. For context, the firm began acquiring BTC in April to hedge against Japan’s debt issues and volatility in the yen.
Metaplanet hinted that its Bitcoin investment strategy is a “direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen”.
*Metaplanet Issues ¥1.75 Billion in 1-year 0.36% Bonds, Proceeds to Fund Additional Purchases of $BTC* pic.twitter.com/Jv3IEylplA
— Metaplanet Inc. (@Metaplanet_JP) November 18, 2024
Metaplanet explicitly added over 600 BTC in October alone. Three weeks ago, the firm announced the purchase of an additional 156 BTC valued at 1.6 billion Japanese Yen, bringing the firm’s total holdings to 1018.17 BTC at the time. Based on Bitcoin’s current market value of $91,636.92, Metaplanet’s Bitcoin Stash is now worth more than $93.3 million.
This suggests that the hike in BTC price has pushed the firm into a huge profit. As of November 13, when Bitcoin traded around $87,000, Metaplanet’s gain topped $28 million. Its stash was only worth $64 million at the time. At the current price level, this profit may have almost doubled. In the past, the financial service provider has used options strategies to boost its holdings.
Hence, the decision to pursue a debt sale hardly surprised the broader crypto community.
MicroStrategy Remains the Undisputed Bitcoin Accumulator
With a Bitcoin holding of 1018.17, Metaplanet is still far from reaching MicroStrategy’s stash. The latter launched its Bitcoin strategy four years ago when the global COVID-19 pandemic hit. Since then, it has consistently acquired more Bitcoin. Now, the Michael Saylor-founded firm holds about 279,420 BTC. This is currently worth $25.6 billion, placing the firm at a very high-profit level.
At this rate, it has successfully exceeded Nike Inc. and International Business Machine (IBM) Corp’s cash holdings. It is only equal to ExxonMobil’s treasury but below Intel and General Motors’s treasury, which have around $29 billion and $32 billion, respectively.
MicroStrategy is looking forward to acquiring $42 billion worth of Bitcoin in the next three years. Based on the 21/21 Plan, the firm intends to divide each year into $10 billion in 2025, $14 billion in 2026, and $18 billion in 2026. Like Metaplanet, MicroStrategy will consider several financial options to secure additional funding. This includes $21 billion from equity and $21 billion from fixed-income securities.
Generally, MicroStrategy remains one of the largest corporate holders of Bitcoin. However, Metaplanet has become the biggest corporate holder of BTC in Asia.
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