Metaplanet Acquires $6.3 Million Bitcoin with Bond Proceeds

2024-06-23 21:00:03

Shalini Nagarajan

Last updated:

June 24, 2024 01:00 EDT | 1 min read

Japanese investment firm Metaplanet disclosed Monday that it will acquire Bitcoin valued at 1 billion yen ($6.3m). The money for its purchase will come from a recent bond sale, the company said in a statement.

Metaplanet, known as “Asia’s MicroStrategy,” said its Bitcoin holdings designated for long-term holding will be recorded at their acquisition cost. These are exempt from taxation based on end-of-term market value assessments.

Further, it added that other Bitcoin holdings will be uated at market prices each quarter. Any gains or losses from these uations will be recorded under non-operating income or expenses.

*Metaplanet directors authorize purchase of ¥1 billion of $BTC from bond proceeds* pic.twitter.com/4eZ6JfQ2cc

— Metaplanet Inc. (@Metaplanet_JP) June 24, 2024

Metaplanet Makes Bitcoin a Core Asset, Eyes Long-Term Hold

The company stated its primary strategy is to retain Bitcoin long-term. But if it is used for operations or other purposes, the equivalent balance will be classified on the balance sheet as current assets.

Before this recent purchase, Metaplanet had made three separate Bitcoin acquisitions in a span of only seven weeks. The company last purchased 23.25 Bitcoin, valued at about $1.59m. That increased its total Bitcoin holdings to 141.07 BTC. With Monday’s purchase, its total holdings would increase to just over 240 BTC ($15m).

Japan’s Debt Woes Drive Metaplanet to Bitcoin

Notably, Metaplanet’s decision to invest in Bitcoin is a move to hedge against Japan’s rising debt burden and the yen’s declining value. Moreover, Japan’s high government debt and persistent negative interest rates all point to the country’s fiscal challenges.

Separately, the company saw its stock price rise nearly 14% on Monday. This has marked a 37% increase over the past month. With its recent Bitcoin purchases, the company now ranks as the 30th largest corporate Bitcoin holder globally, according to Bitcoin Treasuries.

Further, Metaplanet’s Bitcoin holdings are modest compared to MicroStrategy’s 226,331 BTC balance. But its commitment to integrating Bitcoin into its treasury assets has attracted considerable interest.

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