KEYTAKEAWAYS
- Metaplanet takes out a 1 billion yen ($6.8M) loan at 0.1% annual interest to buy bitcoin.
- The company plans to hold bitcoin long-term as a strategic asset.
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Japanese investment firm Metaplanet Inc. doubles down on its cryptocurrency strategy, announcing a significant loan acquisition to purchase more bitcoin, reflecting its long-term confidence in the digital asset’s value.
Japanese investment firm Metaplanet Inc. has taken a bold step in its cryptocurrency strategy by securing a $6.8 million loan to purchase additional bitcoin. The Tokyo-listed company announced on Thursday that its board of directors approved a loan of 1 billion yen with a remarkably low 0.1% annual interest rate.
*Metaplanet announces ¥10.08 billion Gratis Allotment of Stock Acquisition Rights; proceeds to fund additional purchases of $BTC* pic.twitter.com/4OdTFdHnfF
— Metaplanet Inc. (@Metaplanet_JP) August 6, 2024
>> Also read: Metaplanet Completes $6.26M Bitcoin Purchase Plan
Metaplanet stated, “We intend to allocate nearly the entire loan amount to purchasing bitcoin.” The firm emphasized its commitment to holding Bitcoin as a long-term asset, though it noted that any Bitcoin used for operations would be recorded as a current asset on the balance sheet.
This move follows Metaplanet’s Tuesday announcement of plans to conduct a 10 billion yen ($68.4 million) gratis allotment of stock acquisition rights. The company revealed that the majority of these funds would also be directed towards Bitcoin purchases.
Explaining its strategy, Metaplanet said, “Holding Bitcoin as a core asset aligns with our long-term growth strategy and is expected to significantly enhance the company’s profitability and corporate value.”
The investment firm’s interest in Bitcoin isn’t new. In May, Metaplanet announced its adoption of bitcoin as a strategic treasury reserve asset. This decision was attributed to Japan’s economic challenges, including high government debt, prolonged negative real interest rates, and a weakened yen.
Despite recent market volatility, with the Nikkei 225 index experiencing its worst day since 1987 on Monday, falling 12.4%, Metaplanet’s stock closed up 20.2% on Thursday. This surge suggests investor confidence in the company’s cryptocurrency-focused strategy.
As the global financial landscape continues to evolve, Metaplanet’s aggressive Bitcoin acquisition strategy highlights the growing interest in cryptocurrencies as a potential hedge against economic uncertainties.
>> Also read: Bitcoin Whales Capitalize on Market Dip, Triggering Surge in Large Transactions
