Metaplanet, a publicly traded company on the Tokyo Stock Exchange, issued ¥30 billion (approximately $208 million) in bonds to acquire new Bitcoins.
Metaplanet Issues Bonds to Buy More Bitcoin
Metaplanet raised ¥30 billion through the issuance of ordinary zero-interest bonds (about $208 million). These funds will be allocated to purchase 1,005 Bitcoins, which brings the company's total Bitcoin holdings to 13,350 BTC, worth over $1.4 billion at current prices. CEO Simon Gerovich stated that the company's year-to-date yield from this strategy is already 349%.
Ambitious Plans of Metaplanet for Bitcoin Accumulation
Metaplanet aims to increase its Bitcoin holdings to 210,000 BTC by 2027 through its '555 Million Plan.' The company seeks to raise $5.4 billion via bond issuance and other financial instruments to fund this strategy.
Risks of Metaplanet's Zero-Interest Bond Strategy
Although zero-interest bonds reduce capital costs, Metaplanet still faces risks associated with price fluctuations in Bitcoin. Critics warn that a decline in cryptocurrency prices could lead to substantial paper losses and declining investor confidence.
Metaplanet's strategy for acquiring Bitcoin generates both optimism and concerns among investors, given the high volatility of the cryptocurrency market.
