Metaplanet Issues $11.3M Bond Sale To Acquire More Bitcoin

Tokyo-listed Metaplanet has announced a significant move to bolster its Bitcoin holdings by issuing one-year ordinary bonds totaling 1.75 billion yen ($11.3 million) at an annual interest rate of 0.36%.

The funds raised will be entirely allocated to acquiring Bitcoin, the company revealed on Monday, 18 November 2024, through a post on X. The initiative follows a similar strategy employed by US-based MicroStrategy, which has become the largest corporate Bitcoin investor.

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Metaplanet Has Amassed Over 1,000 BTC

Metaplanet began purchasing Bitcoin in April 2024 as a hedge against Japan’s mounting debt and currency volatility. Since then, the company has amassed 1,018 BTC, valued at approximately $92.33 million, according to Bitcoin Treasuries.

This marks a significant increase from its holdings of 492.82 BTC in late September. The firm has also employed Bitcoin options strategies to enhance its portfolio.

*Metaplanet Issues ¥1.75 Billion in 1-year 0.36% Bonds, Proceeds to Fund Additional Purchases of $BTC* pic.twitter.com/Jv3IEylplA

— Metaplanet Inc. (@Metaplanet_JP) November 18, 2024

Dubbed “Asia’s MicroStrategy,” Metaplanet has adopted an aggressive approach to Bitcoin acquisitions, even introducing a Key Performance Indicator (KPI) similar to MicroStrategy’s “BTC Yield” to measure the impact of Bitcoin on shareholder returns.

The company’s Q3 financial report highlighted a notable $28 million increase in its Bitcoin holdings since the start of its acquisition strategy, underscoring the asset’s potential amid a broader crypto rally. Bitcoin has surged over 105% this year, reaching $87,000.

In October alone, Metaplanet added over 156 BTC worth $10 million to its portfolio, bringing its total Bitcoin investment to $64 million. The company also reported a 46.3% year-over-year increase in revenue to $1.7 million, largely driven by its hotel business and digital asset ventures.

Despite this, Metaplanet recorded a net loss of $2.1 million for the nine months ending September 30, 2024, an improvement from the $2.7 million loss reported in the same period last year.

Metaplanet has raised over $26.7 million this year through stock issuances and bond sales, signaling its commitment to expanding its Bitcoin holdings.

The firm’s CEO stated in a recent report that capital market activities and operational income would continue to drive Bitcoin acquisitions as part of its long-term strategy.

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Healthcare Tech Firm Semler Increases Bitcoin Holdings To 1058 BTC

As reported, healthcare technology firm Semler Scientific has expanded its Bitcoin portfolio. It purchased an additional 47 BTC for $3 million. The acquisition brings the company’s total holdings to 1,058 BTC as part of its ongoing strategy to accumulate Bitcoin.

The company has positioned Bitcoin as its primary treasury asset. It purchased 141 BTC for $8.4 million in the third quarter alone. Semler’s strategy mirrors that of MicroStrategy, which holds 252,220 BTC, making it the largest public corporate holder of Bitcoin.

“We are capitalizing on the opportunity to maximize stakeholder value by accumulating Bitcoin,” Eric Semler, the company’s chairman, said.

He added that Semler plans to continue purchasing Bitcoin using operational cash flow and proceeds from its at-the-market (ATM) program, which became effective on 13 August 2024 and allows for the sale of up to $50 million in common stock.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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