Metaplanet, a Japanese investment firm, has recently secured a $6.8 million loan from one of its shareholders, MMXX Ventures. This loan, equivalent to 1 billion Japanese yen, is intended to bolster Metaplanet’s Bitcoin holdings. The loan comes with a mere 0.1% interest rate per annum and a six-month term, commencing on August 8. If Metaplanet chooses to allocate the entire $6.8 million to Bitcoin, it could acquire an additional 118.5 BTC at current market prices.
In a bid to diversify its portfolio and hedge against Japan’s rising debt and a depreciating yen, Metaplanet has articulated its plan to increase its Bitcoin reserves. This move follows the announcement of a $70 million stock rights offering, with $58 million earmarked for Bitcoin investments. By adopting a strategy reminiscent of MicroStrategy, Metaplanet is aiming to consolidate its finances and secure long-term success through Bitcoin investments.
Metaplanet’s CEO, Simon Gerovich, highlighted the company’s struggle as a “zombie” entity before its foray into Bitcoin. Gerovich shared his journey of stabilizing the company’s finances and reducing debt, ultimately recognizing Bitcoin as a viable solution for Metaplanet’s growth. With a current holding of 246 BTC, valued at approximately $13.95 million, Metaplanet has witnessed a 12% decline in its average Bitcoin purchase price since its initial investment on April 23.
Despite facing challenges in the stock market, including a significant drop in stock price on “Black Monday,” Metaplanet remains unfazed. The company’s stock price surged by over 300% following the announcement of its Bitcoin investment strategy. However, the stock price has since declined, exacerbated by the crypto market downturn and the adverse effects of market fluctuations on Metaplanet’s stock value.
Amidst the ups and downs of the market, Metaplanet maintains its confidence in the long-term potential of Bitcoin. The company believes that an increase in BTC prices will not only strengthen its balance sheet but also enhance its asset value and contribute positively to its earnings. Despite the recent turmoil in the Japanese stock market and the global cryptocurrency market, Metaplanet remains committed to its strategic investment in Bitcoin.