Highlights:
- Metaplanet uses Bitcoin as a treasury reserve, securing bonds with hotel property for investor confidence.
- MicroStrategy leads corporate Bitcoin holdings with 279,420 BTC, leveraging it to boost shareholder value.
- Bitcoin’s adoption as a financial hedge grows as firms like Metaplanet and MicroStrategy invest amid economic challenges.
Metaplanet, a Japanese investment firm, has announced the issuance of a new ¥1.75 Billion bond to enhance its presence in the Bitcoin market. The bond has an annual interest of 0.36% and matures in November 2025. Metaplanet’s move demonstrates its willingness to further its cryptocurrency investments despite the economic uncertainties in Japan.
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*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
The company said the bond issuance will have no significant financial impact on its 2024 results. Bitcoin has become one of the key treasury reserve assets Metaplanet can use to hedge against economic challenges. The company currently holds 1,018 BTC worth $92.18 million. Metaplanet holds 19% of its total market value in these Bitcoin holdings.
The Tokyo-based firm has steadily increased investments in Bitcoin since April 2024. The first purchase it made was 117 BTC for $7.19 million. In October, the company bought another 156 BTC for $10 million. The aim of these acquisitions is part of a broader financial strategy to diversify assets and strengthen shareholder confidence.
Hotel Property Provides Security for Metaplanet Bonds
The bonds are secured by a first-priority mortgage to ensure bondholder security. Hotel Royal Oak Gotanda, a property belonging to its subsidiary Wen Tokyo, is covering the mortgage. While the bonds are not directly collateralized, this arrangement protects investors against potential financial risks.
The decision to use hotel property as security highlights the company’s efforts to balance risk and reward. Metaplanet’s strategy aligns with the growing need for innovation in corporate financial management. The company is also looking to offer Bitcoin options trading to generate premium income and further develop its holdings.
However, Metaplanet continues to struggle financially. It reported a net loss of $2.1 million in its report for the nine months that ended in September. The loss, however, is down from the $2.7 million reported in the same period last year.
MicroStrategy Extends Lead in Bitcoin Holdings
MicroStrategy continues to lead other firms in the acquisition of Bitcoin. Recently the U.S.-based firm added 27,200 BTC to their reserves. The company now holds 279,420 BTC.
The company’s holdings now exceed the cash reserves of major firms like IBM and Nike. With Bitcoin’s price increasing 105% this year, MicroStrategy has positioned itself to benefit significantly from the cryptocurrency rally. The firm views Bitcoin as a strategic treasury asset that aligns with its goal of enhancing shareholder value.
MicroStrategy Leads In Corporate Reserves With $26 Billion Bitcoin Stash
MicroStrategy’s Bitcoin reserve, now valued at around $26 billion, has surpassed the cash holdings of corporations like Nike, IBM, and Johnson & Johnson. With 279,240 BTC acquired at an average cost of… pic.twitter.com/6MYkxzSYTe
— The Wolf Of All Streets (@scottmelker) November 17, 2024
MicroStrategy’s Strategic Approach to Shareholder Value
MicroStrategy has introduced a new performance metric, “BTC Yield,” meant to maximize returns. This key performance indicator measures the impact of Bitcoin acquisitions on investors’ profits. The firm is also looking into Bitcoin options trading to diversify its revenue streams.
While Bitcoin has been quite volatile, MicroStrategy and Metaplanet have stuck to their plan to leverage Bitcoin for long-term growth. The acquisitions show confidence that Bitcoin will play a role as a hedge against inflation and economic instability. With a crypto-friendly administration coming up in the United States, the value of Bitcoin is expected to keep rising.
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