Metaplanet stock soars 20% as firm agrees to 1 billion yen loan to fund Bitcoin acquisition Metaplanet stock soars 20% as firm agrees to 1 billion yen loan to fund Bitcoin acquisition
Metaplanet said the loan would be collateral free.
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Updated: Aug. 8, 2024 at 2:21 pm UTC
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Tokyo-listed Bitcoin investment firm Metaplanet plans to secure a loan of ¥1 billion, equivalent to $6.8 million, to increase its Bitcoin holdings, according to an Aug. 8 statement.
Earlier in the week, the firm revealed plans to raise ¥10.08 billion (approximately $70 million) by issuing its 11th series of stock acquisition rights to all common shareholders. The offer includes one stock acquisition right per common share, with the option to purchase shares at ¥555 (~$4) between Sept. 6 and Oct. 15.
The firm views these additional acquisitions as key components of its long-term strategy. It stated:
“Our basic policy is to hold Bitcoin long-term; however, if we utilize Bitcoin for operations, the applicable Bitcoin balance will be recorded as a current asset on the balance sheet.”
According to Google Finance data, the news propelled the company stock by more than 20% to 893 yen as of press time.
This continues a positive trend observed since the company pivoted towards Bitcoin. The Japan-based company’s shares have surged by more than 450% on the year-to-date metric.
Metaplanet loan
Metaplanet’s planned loan is set at a 0.1% annual interest rate with a tenor of six months.
The firm stated that the loan would require no collateral. However, the lender, MMXX Ventures Limited, may demand an early repayment if Metaplanet seeks to raise additional funds. MMXX Ventures Limited is a shareholder in the company.
Metaplanet anticipates that the interest costs will have a minimal impact on its finances.
Meanwhile, market observers noted that the move reflects the company’s continued bullish stance on Bitcoin despite recent market downturns.
In recent months, Metaplanet has aggressively integrated Bitcoin into its Treasury reserve while employing various fundraising tactics to accumulate the flagship digital asset.
As of the latest update, Metaplanet holds 246 Bitcoin, valued at around $14 million based on current Bitcoin Treasuries data.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Metaplanet
Metaplanet Inc., a publicly traded company listed on the Tokyo Stock Exchange (3350), is a Japanese company that has undergone a strategic transformation to focus on Bitcoin.
