Nikolas Sargeant
Japanese investment firm Metaplanet has announced its third series of ordinary bonds, targeting a raise of 1.75 billion yen ($11.3 million) to expand its Bitcoin investment portfolio.
The bonds, guaranteed by the company's director, come with a 0.36% annual interest rate and will mature in November 2025. Metaplanet has indicated that this financial move is expected to have minimal impact on its 2024 financial results.
While the bonds themselves are not directly collateralized, they are secured through a first-priority mortgage on the Hotel Royal Oak Gotanda, a property owned by Metaplanet's wholly-owned subsidiary, Wen Tokyo. This arrangement ensures bondholders have recourse through the property if needed.
Building on Bitcoin Success
Metaplanet recently reported a significant $28 million valuation gain from its Bitcoin investments. According to Bitcoin Treasuries, the company's current Bitcoin holdings stand at 1,018 BTC, with total investments exceeding $64 million. This impressive growth has been achieved despite ongoing operational expenses affecting the company's financial performance.
Following MicroStrategy's Lead
Metaplanet's investment strategy mirrors that of MicroStrategy, as it increasingly adopts Bitcoin as a treasury reserve asset to enhance shareholder value. This approach follows the successful template set by MicroStrategy, which recently strengthened its position as the leading corporate Bitcoin holder by acquiring an additional 27,200 BTC. MicroStrategy's total Bitcoin holdings now stand at approximately 279,420 BTC, acquired at a cumulative cost of $11.9 billion.
The Japanese firm's latest bond issuance represents another step in its commitment to building a significant Bitcoin position. It follows MicroStrategy's example of using corporate debt instruments to fund digital asset acquisition.
