Story Highlights
- Metaplanet issues zero-interest bonds to purchase more Bitcoin.
- The corporation now possesses 3,200 BTC, worth over $265 million.
- Metaplanet is the 10th largest BTC-holding public entity.
Metaplanet Inc. is doubling down on Bitcoin, purchasing another 150 BTC for $12.5 million at an average price of $83,508. The new purchase brings its holdings to 3,200 BTC and plans to hold 10,000 BTC in its treasury within the year. Despite the market volatility, CEO Simon Gerovich reaffirmed the company’s commitment to Bitcoin as a treasury cornerstone.
The company’s aggressive accumulation strategy is consistent with MicroStrategy (now Strategy), which recently purchased 130 BTC to add to its massive Bitcoin reserves, now at 499,226 BTC. As institutions increasingly add Bitcoin to their corporate treasuries, Metaplanet is mimicking.
Metaplanet Accelerates Bitcoin Accumulation With Debt Financing
To finance its expansion, Metaplanet sold Evo Fund ¥2 billion ($13 million) zero-interest bonds, replicating MicroStrategy’s debt-cum-Bitcoin move. With the bonds, Metaplanet can borrow money without advance interest payments and thereby make large-sized purchases on downturns in the market.
The company’s shareholder base has expanded to more than 50,000 with strong institutional backing, including Strategy. Contrary to MicroStrategy’s earlier high-price Bitcoin buys that led to unrealized losses, Metaplanet appears to be playing the game differently by strategically buying on dips in the market.
The wider crypto market is still in a correcting mode, with Bitcoin ETFs witnessing $5 billion of outflows over the last few weeks. Institutional buying is still firm, with more than 170 institutions now possessing over 3.1 million BTC. Sentiment is mixed, with some predicting further corrections while others predict that current fear conditions will witness a bounce-back.
As part of its latest investment, Metaplanet acquired 150 BTC valued at about $12.5 million. The purchase brings its Bitcoin assets to 3,200 BTC, valued at about $265 million at current market prices. With this accumulation, Metaplanet now ranks as the 10th largest publicly listed company to be a holder of Bitcoin, according to bitcointreasuries.net.
For Metaplanet, these price fluctuations offer the chance to contribute to its Bitcoin holdings at low prices. With assets of nearly $1 billion, the company is becoming a formidable institutional force in the world of Bitcoin. By continuing to employ debt to finance acquisitions, Metaplanet is spearheading the move among companies to adopt Bitcoin.
