Metaplanet To Expand Bitcoin Holdings With $11.3 Million Bond Sale
in a announcement Today, Japanese company Metaplanet revealed plans to increase its Bitcoin (BTC) holdings by issuing $11.3 million worth of bonds to fund purchases.
Metaplanet will increase BTC holdings by issuing bonds
The Tokyo-listed company announced on November 18 that its board of directors had approved a debt sale with a guaranteed amount of 1.75 billion yen (approximately $11.5 million). The bond has a term of one year and will mature on November 17, 2025, with an annual interest rate of 0.36%.
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Proceeds from the bond issuance will be used solely to purchase Bitcoin. Notably, Metaplanet already holds 1,018 BTC on its balance sheet.
Metaplanet is often referred to as the “MicroStrategy of Asia” and its latest BTC acquisition announcement comes a week after the acquisition was announced by US business intelligence company MicroStrategy. Purchased 27,200 BTC, which is worth approximately $2.03 billion at current market prices.
Metaplanet began acquiring BTC as a strategic reserve asset in April. The company announced that it will adopt a “Bitcoin first, Bitcoin only” strategy, reflecting MicroStrategy’s BTC investment strategy.
The early-stage investment firm has steadily expanded its Bitcoin portfolio since April. For examplecompany obtained Extra 20.195 BTC in Juneworth approximately $1.2 million.
it additional Another 38.464 BTC was obtained in September, worth approximately $2 million. Most recently, in October, the company Announce It purchased 156.78 BTC, bringing its total holdings to over 1,000 BTC.
Metaplanet’s stock price was little changed despite the bond announcement. The company’s shares edged up 0.81% on Monday.
However, since the company began its Bitcoin acquisition strategy, its stock price has experienced explosive growth. On April 4, 2024, Metaplanet’s stock was trading at 190 yen ($1.23). Today, they trade at 1,994 yen ($12.86), up nearly 950% in just over seven months.
Will Bitcoin’s Scarce Supply Drive Prices Further?
As retail, institutional and even sovereign demand increases, Bitcoin’s limited supply could lead to a supply shock that could potentially push the digital asset’s price to unprecedented levels. It should be reminded that the total supply of BTC is designed to be capped at 21 million.
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According to a recent analyze CryptoQuant analysts say BTC reserves on cryptocurrency trading platforms have fallen to a five-year low. The analyst also noted that more investors are holding Bitcoin for the long term as a hedge against rising inflation and currency depreciation.
Likewise, the most recent Report Showing that the demand for Bitcoin far exceeds its supply. This growing supply-demand imbalance could set the stage for Bitcoin’s next major price breakout. At press time, BTC was trading at $90,909, up 0.1% in the past 24 hours.
Featured image from Unsplash, chart from Yahoo! Finance and Tradingview.com
