Metaplanet Issues ¥5 Billion in Bonds to Buy More Bitcoin

Highlights:

• Metaplanet raises ¥5 billion in zero-interest bonds to accelerate Bitcoin purchases.
• The company aims to become Asia’s largest Bitcoin holder, following MicroStrategy’s strategy.
• Metaplanet’s stock dropped 4.24%, yet it surged 2,023% this year.

Japanese investment firm Metaplanet Inc., which announced earlier this year plans to adopt Bitcoin as a key treasury reserve asset, is accelerating its cryptocurrency investment strategy. On Dec. 20, Metaplanet announced its fifth series of zero-interest ordinary bonds totaling 5 billion yen (about $33.3 million). The funds raised from this issuance will be allocated to speeding up Bitcoin purchases. These bonds, issued on December 20th, will mature on June 16, next year.

メタプラネットは、EVO FUNDを割当先とする第5回普通社債で50億円を調達し、第12回新株予約権に関連する総調達額が95億円に達しました。この資金により、2025年に予定していたビットコイン購入を今年中に前倒しして実行します。ビットコイン購入の結果については、後日改めてお知らせいたします。… https://t.co/RLw3ADFNRr

— Simon Gerovich (@gerovich) December 20, 2024

The Tokyo-listed firm raised 9.5 billion yen ($60.6 million) this week through two bond issuances to accelerate its Bitcoin purchases. Metaplanet issued a 4.5 billion yen ($28.7 million) bond earlier this week. These bonds will also mature on June 16 next year. 

CEO Simon Gerovich said in a statement shared on social media platform X that “these funds will bring forward Bitcoin purchases originally planned for 2025 into the current year.” The company has been actively buying Bitcoin since its May announcement. It aims to prioritize cryptocurrency in its financial strategy. Since then, the company has added 1,150 BTC, worth $122.67 million, to its holdings. Metaplanet values BTC due to its limited supply and independence from government control.

The latest bond issuances are part of Metaplanet’s broader goal of becoming Asia’s largest Bitcoin holder. The company is adopting a strategy similar to that of MicroStrategy, using Bitcoin as a key asset. This approach aims to help the company address future financial challenges.

Metaplanet’s Stock Declines Following the Announcement

Metaplanet’s stock dropped 4.24% on Friday, closing at 3,610 yen on the Tokyo Stock Exchange. However, the stock has skyrocketed 2,023% since the start of the year. On Thursday, Metaplanet began trading on the U.S. OTCQX market. Shares closed nearly 10% lower on the first day. While Metaplanet’s Bitcoin holdings grow, MicroStrategy remains the largest corporate holder with 439,000 BTC per Bitcoin Treasury.

To attract investors, Metaplanet is launching a Bitcoin Rewards Program. Shareholders who own at least 100 shares by December 31, 2024, will participate in a lottery. The prize pool amounts to ¥30 million ($199,500), and 2,350 winners will be selected.

Metaplanet Expects First Operating Profit in Seven Years

Metaplanet anticipates its first operating profit for the first time since 2017. This comes after the company added Bitcoin to its balance sheet earlier this year. On December 18, Metaplanet forecasted a revenue of 890 million yen ($5.8 million) for the current fiscal year. This is a substantial increase from last year’s 261 million yen. The company expects an operating profit of 270 million yen, reversing last year’s 468 million yen loss.

*Metaplanet Projects First Fiscal Year Operating Profit Since 2017* pic.twitter.com/oYNKOtNatR

— Metaplanet Inc. (@Metaplanet_JP) December 18, 2024

A large part of the revenue, 520 million yen ($3.4 million), came from selling Bitcoin put options. Metaplanet also reported unrealized gains of about 7.446 billion yen ($48.6 million) from its Bitcoin holdings. Put options give the owner the right to sell an asset at a set “strike price.” This allows investors to establish a minimum selling price and avoid losses.