Following a recent announcement to raise $70 million for Bitcoin (BTC) purchases, Japanese investment firm Metaplanet has secured a 1 billion yen ($6.8 million) loan specifically for acquiring more of the leading cryptocurrency. This aggressive move highlights Metaplanet’s bullish stance on Bitcoin’s long-term value, despite recent market volatility.
The loan, obtained from shareholder MMXX Ventures, boasts an incredibly low 0.1% annual interest rate and a six-month term. With Bitcoin currently priced around $57,266, the funds could potentially translate into an additional 118.5 Bitcoin for Metaplanet’s coffers.
This loan comes on the heels of Metaplanet’s plan to raise $70 million through a stock rights offering, with $58 million earmarked for further Bitcoin (BTC) investments. This strategy mirrors that of MicroStrategy, another company known for its significant Bitcoin holdings.
Metaplanet’s shift towards Bitcoin began in May 2024, a move CEO Simon Gerovich described as a hedge against Japan’s growing debt burden and weakening yen. Previously considered a struggling company, Gerovich believes Bitcoin represents an “apex monetary asset” that can position Metaplanet for long-term success.
So far, Metaplanet has accumulated 246 Bitcoin across seven separate purchases, totaling roughly $13.95 million at current market prices. However, the company’s average purchase price of $65,145 indicates they are currently underwater on their investment by about 12.8%.
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Despite the recent market downturn, including a “Black Monday” event on August 5th that saw Bitcoin plummet 10% within two hours, Metaplanet’s stock price has seen a dramatic rise. Since announcing their Bitcoin strategy in April, the company’s stock has surged by an impressive 290%, currently trading at 643 yen ($4.39). However, it’s worth noting the stock price remains below its year-high of 3,000 yen ($20.50) reached in July.
Metaplanet’s aggressive pursuit of Bitcoin (BTC) comes amid a period of uncertainty in the cryptocurrency market. While the company remains confident in Bitcoin’s long-term potential, investors should carefully consider their own risk tolerance before following suit.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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