Metaplanet secures 1 Billion yen loan to buy more Bitcoin(BTC)

Just two days after announcing plans to raise $70 million through a stock rights offering, ‘Asia’s MicroStrategy’ has secured a $6.8 million loan from one of its shareholders to purchase additional Bitcoin. Metaplanet, a Japanese investment firm, has just agreed to take out a $6.8 million loan (1 billion Japanese yen) from one of its shareholders to buy more Bitcoin.

The loan from MMXX Ventures, a Metaplanet shareholder, has a 0.1% annual interest rate and six months beginning on August 8. The corporation stated in a statement that it would be paid back in one lump payment.

If the corporation spent almost 100% of the $6.8 million loan on Bitcoin, it would be able to purchase an additional 118.5 Bitcoin BTC $56,855 at current market pricing. The announcement comes only two days after Metaplanet announced plans to raise $70 million through a stock rights offering, with $58 million of that going toward Bitcoin investments.

Metaplanet stated on May 13 that it will use a “entire range of capital market instruments” to increase its Bitcoin reserves, similar to MicroStrategy’s strategy. The corporation initially implemented the technique to hedge against Japan’s rising debt burden and the rapidly sinking Japanese yen.

According to its CEO, Simon Gerovich, speaking at the Bitcoin 2024 conference in late July, Metaplanet was a textbook “zombie” company before this.

Gerovich described struggling to clean up Metaplanet’s balance sheet and pay down debt before realizing that Bitcoin, the “apex monetary asset,” may help the company prosper in the long run.

Metaplanet has purchased 246 Bitcoins worth $13.95 million at current market values in seven distinct transactions, according to Bitcoin Treasuries data. The firm’s average Bitcoin purchase price is $65,145, representing a 12.8% decrease since its initial Bitcoin investment on April 23.

Google Finance data shows the company’s stock price has risen 290% since it announced its Bitcoin plan on April 9, trading at $4.39 (643 Japanese yen). However, it has been down from its year-high of $20.50 (3,000 Japanese yen), which it recorded on July 24. This fall was exacerbated by the cryptocurrency industry’s “Black Monday” on Aug. 5, which saw Bitcoin fall 10% in a short two-hour window.

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