Metaplanet, a Tokyo-listed company, is following in the footsteps of MicroStrategy by announcing a debt sale to increase its bitcoin (BTC) holdings. The company has revealed that it will issue one-year bonds with a guarantee totaling 1.75 billion yen ($11.3 million) for an annual interest rate of 0.36%. The proceeds from this debt sale will be used exclusively to purchase more BTC.
Since April of this year, Metaplanet has been accumulating BTC as a way to hedge against Japan’s debt problems and the volatility of the yen. Currently, the company holds 1,018 BTC valued at $92.33 million. In addition to direct purchases, Metaplanet has also utilized options strategies to bolster its BTC holdings.
Despite its efforts, Metaplanet’s BTC reserves pale in comparison to MicroStrategy’s massive stash of 279,420 BTC. This move by Metaplanet comes at a time when the price of Bitcoin has soared past $64,000, while traditional assets like gold are also experiencing significant gains. Additionally, the ETH/BTC ratio has declined to its lowest level since April 2021, prompting questions about whether Bitcoin is losing its bullish momentum.
It’s important to note that CoinDesk, the source of this information, is a respected media outlet that focuses on covering the cryptocurrency industry. The journalists at CoinDesk adhere to strict editorial policies to ensure the integrity and independence of their reporting. CoinDesk is part of the Bullish group, which has investments in digital asset businesses. As such, employees of CoinDesk, including journalists, may receive equity-based compensation from the Bullish group.
In conclusion, Metaplanet’s decision to issue bonds to acquire more Bitcoin highlights the growing trend of companies diversifying their portfolios with digital assets. As the cryptocurrency market continues to evolve and gain mainstream acceptance, it will be interesting to see how traditional financial institutions adapt to this new paradigm.
