Metaplanet Secures ¥1 Billion Loan to Buy More Bitcoin

Metaplanet, a publicly listed Japanese investment firm, has secured a ¥1 billion ($6.8 million) loan to purchase additional Bitcoin. This comes just days after announcing plans to raise ¥10.08 billion through a stock rights offering, mostly for Bitcoin buys.

Metaplanet first revealed its Bitcoin treasury strategy in May, aiming to hedge against yen depreciation. The firm currently holds around 246 Bitcoins worth $14 million acquired over many buys.

The 0.1% APR loan from shareholder MMXX Ventures has a 6-month term. Metaplanet plans to allocate the entire ¥1 billion to expand its Bitcoin reserves.

At current prices, ¥1 billion could purchase around 118 additional bitcoins. This mimics MicroStrategy’s playbook of raising debt to fund Bitcoin purchases since 2020. MicroStrategy’s bitcoin bet has increased its share price dramatically.

CEO Simon Gerovich stated that the firm believes Bitcoin offers twin benefits as an asset that can appreciate and hedge against a weakening yen.

By securing loans and issuing stock to accumulate bitcoin, Metaplanet is essentially borrowing yen to stack sats. The company can pay back loans using future Bitcoin appreciation.

The loan and planned stock offering highlight Metaplanet’s commitment to aggressively growing its Bitcoin war chest. As a public company, this strategy indirectly exposes Japanese investors to Bitcoin. 

Disclaimer: Bitcoin Magazine is wholly owned by BTC Inc., which also operates UTXO Management, a regulated capital allocator focused on the digital assets industry and invested in Metaplanet. UTXO invests in a variety of Bitcoin businesses, and maintains significant holdings in digital assets.