Business
Metaplanet to Increase Bitcoin Holdings by $6 Million
Metaplanet plans to boost its Bitcoin holdings with a $6 million investment, aiming to capitalize on the digital currency’s growth potential.
Japan-based investment advisor Metaplanet has announced its plans to further increase its bitcoin (BTC) holdings by an additional $6 million worth of the cryptocurrency, as revealed in a statement released on Monday. The firm currently holds $9 million worth of bitcoin.
Board Resolution and Funding Source
In the statement, Metaplanet Inc. (3350:JP) disclosed that its Board of Directors has approved the purchase of Bitcoin worth 1 billion yen during a recent meeting. The funds for this acquisition will be sourced from an upcoming bond issuance scheduled for Wednesday. The bonds carry an annual interest rate of 0.5% and will mature on June 25, 2025.
Market Response
The announcement led to a surge in stock prices, with trading prices in Tokyo increasing by as much as 12% following the news, according to data from Yahoo Finance.
Bitcoin Acquisition Strategy
Metaplanet initiated its bitcoin purchases back in April as part of its strategy to reduce exposure to the yen and provide Japanese investors with access to cryptocurrencies under a preferential tax structure. In May, the company officially declared BTC as a reserve asset and expanded its holdings by purchasing an additional $1.6 million worth of bitcoin in June.
Current Holdings and Status
As of Monday, Metaplanet holds 141 BTC, making it the largest corporate holder of bitcoin in Japan based on data from Bitcointreasuries. Despite a 3% decrease in bitcoin’s value over the past 24 hours, the cryptocurrency is currently trading at $63,200 during Asian afternoon hours.