Metaplanet Issues Bonds Worth ¥5 Billion to Fund Bitcoin Purchases

Metaplanet issued ¥5 billion in bonds via EVO FUND to raise funds for Bitcoin purchases, highlighting its strategic cryptocurrency investment approach

The 5th Series Bonds feature no interest and include flexible early redemption terms, offering innovative financial options for investors

Metaplanet assures no material financial impact on its fiscal 2024 results, with timely disclosures on any notable changes due to the issuance

Metaplanet Inc. has successfully issued its 5th Series of Ordinary Bonds through a private placement with EVO FUND. This issuance, valued at ¥5 billion (approximately $31.91 million), aims to support the company’s plans to expand its Bitcoin holdings. The notice was officially released on December 20, 2024, confirming the bond issue and its intended purpose

Strategic Allocation of Funds

The proceeds from this bond issuance will exclusively fund Bitcoin acquisitions. This plan aligns with Metaplanet’s prior announcement on November 28, detailing the issuance of its 12th Series Stock Acquisition Rights, including an Exercise Price Adjustment Provision and a related purchase agreement. This move underscores the company’s focus on diversifying its financial assets by investing in cryptocurrency

Each bond in this series is valued at ¥250 million (approximately $1.59 million). The bonds carry no interest, and upon maturity, bondholders will receive the equivalent of 100 yen for every 100 yen invested. The full payment for the bonds was due on December 20, 2024, and the maturity date is set for June 16, 2025. Additionally, the bonds may be redeemed early at the request of EVO FUND through a written notice to Metaplanet. Early redemption is also possible when proceeds from the exercise of stock acquisition rights reach specific thresholds

Unsecured Bonds Without Trustees

These bonds are neither guaranteed nor collateralized and are exclusively available to EVO FUND. As per Article 702 of the Companies Act and Article 169 of the Regulations for Enforcement of the Companies Act, no bond trustee will be appointed. Payments for both the principal and interest will be managed from Metaplanet’s office in Tokyo’s Minato-ku district

Metaplanet has clarified that this bond issuance will not materially affect its consolidated financial results for the fiscal year ending December 31, 2024. However, the company has pledged to provide timely disclosures should any significant changes arise

Borrowing to Invest in Bitcoin

This strategy allows Metaplanet to invest in Bitcoin without depleting its cash reserves. By issuing bonds and borrowing from investors like EVO FUND, the company secures the flexibility to pursue its cryptocurrency ambitions. However, this approach entails financial obligations, as the borrowed funds must be repaid regardless of Bitcoin’s market performance