Tokyo-listed Bitcoin investment firm Metaplanet plans to secure a loan of ¥1 billion, equivalent to $6.8 million, to increase its Bitcoin holdings, according to an Aug. 8 statement.

Earlier in the week, the firm revealed plans to raise ¥10.08 billion (approximately $70 million) by issuing its 11th series of stock acquisition rights to all common shareholders. The offer includes one stock acquisition right per common share, with the option to purchase shares at ¥555 (~$4) between Sept. 6 and Oct. 15.

The firm views these additional acquisitions as key components of its long-term strategy. It stated:

“Our basic policy is to hold Bitcoin long-term; however, if we utilize Bitcoin for operations, the applicable Bitcoin balance will be recorded as a current asset on the balance sheet.”

According to Google Finance data, the news propelled the company stock by more than 20% to 893 yen as of press time.

This continues a positive trend observed since the company pivoted towards Bitcoin. The Japan-based company’s shares have surged by more than 450% on the year-to-date metric.

Metaplanet loan

Metaplanet’s planned loan is set at a 0.1% annual interest rate with a tenor of six months.

The firm stated that the loan would require no collateral. However, the lender, MMXX Ventures Limited, may demand an early repayment if Metaplanet seeks to raise additional funds. MMXX Ventures Limited is a shareholder in the company.

Metaplanet anticipates that the interest costs will have a minimal impact on its finances.

Meanwhile, market observers noted that the move reflects the company’s continued bullish stance on Bitcoin despite recent market downturns.

In recent months, Metaplanet has aggressively integrated Bitcoin into its Treasury reserve while employing various fundraising tactics to accumulate the flagship digital asset.

As of the latest update, Metaplanet holds 246 Bitcoin, valued at around $14 million based on current Bitcoin Treasuries data.

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Bitcoin investment firm Metaplanet is set to raise ¥10.08 billion (approximately $70 million) by offering its 11th series of stock acquisition rights to all common shareholders.

In an Aug. 6 statement, the Japanese company outlined plans to allocate ¥8.5 billion (around $58.76 million) of this raised funds to purchase additional Bitcoin.

The firm said it would distribute one stock acquisition right per common share to shareholders, as recorded on Sept. 5. These rights permit shareholders to acquire Metaplanet stock at a price of ¥555 (around $4) between Sept. 6 and Oct. 15.

The new funding will enable the company to significantly expand its Bitcoin holdings, aligning with its long-term growth strategy. Metaplanet currently holds about 246 BTC, valued at around $13.4 million.

Meanwhile, Metaplanet’s move is straight from the playbook of MicroStrategy, a business intelligence firm that has accumulated over 220,000 Bitcoins through debt and equity raises since 2020.

Bitcoin pivot

Metaplanet plans to use the funds raised primarily to acquire Bitcoin and invest in related sectors.

The firm restated its belief in the flagship digital asset’s long-term potential despite the recent declines in Bitcoin prices.

Furthermore, it highlighted BTC’s strength as a hedge against currency depreciation, particularly the yen, which has recently depreciated massively against the US Dollar.

Metaplanet stated:

“An increase in Bitcoin prices is expected to strengthen our balance sheet, enhance asset value, and positively contribute to our earnings.”

The company revealed that it was considering potential future business ventures within the BTC ecosystem, adding that it could generate additional income from its Bitcoin holdings by selling covered calls on the flagship digital assets.

Metaplanet’s shift towards Bitcoin comes as it has strategically exited most of its hotel business, which had suffered from declining revenue and recurring losses over five consecutive periods.

Meanwhile, it suggested that the hotel division could be rejuvenated by transforming it to strategically cater to Bitcoin enthusiasts and businesses while offering unique services and generating additional revenue sources.

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Bitcoin price briefly traded above the $68,000 mark the past day after President Joe Biden decided not to seek re-election in the November elections.

However, the digital asset has slightly retraced to $67,206 as of press time amid news of Metaplanet’s continued Bitcoin purchase and bankrupt Mt. Gox’s repayment plans.

Metaplanet buys Bitcoin

The Tokyo exchange-listed Metaplanet revealed that it purchased 20.381 BTC for 200 million yen, equivalent to $1.27 million, according to a July 22 notice.

The firm said this latest acquisition brings its total Bitcoin holdings to 245.992 BTC and completes its June 24 plans to buy 1 billion yen of the top digital asset.

Over the past months, Metaplanet has consistently acquired BTC as part of its ongoing strategy to adopt the top crypto as a treasury reserve asset. The company said this move was necessary to protect it against the recent economic conditions in Japan, where the national currency has struggled considerably against the US dollar.

CoinGecko data shows that the company’s slew of BTC purchases has propelled it into the rankings of the top 20 public companies holding Bitcoin.

Mt. Gox test transactions

Blockchain analytical firm Arkham Intelligence reported that the bankrupt crypto exchange Mt. Gox made several test transactions to the Bitstamp exchange earlier today, July 22.

According to the platform:

“Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments.”

“These transfers are likely to represent test transactions,” Arkham added.

Mt. Gox wallet holds more than 90,000 BTC worth around $6.09 billion despite these transfers, according to Arkham’s platform.

Last week, Kraken, another crypto exchange Mt. Gox was working with to distribute creditors’ funds, confirmed receipt of the assets sent to its platform. The exchange told users that it would work to credit the funds to their account “as soon as possible.”

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Metaplanet has become one of the top 30 corporate holders of Bitcoin in the world after its recent acquisition.

On June 11, Metaplanet announced the purchase of 23.25 Bitcoin for ¥250 million ($1.59 million), averaging ¥10,706,180 ($69,627) per Bitcoin. This transaction increased the company’s total Bitcoin holdings to 141.07 BTC, acquired for ¥1.45 billion ($9.2 million) at an average price of ¥10,278,391 ($65,365) per Bitcoin.

This marks Metaplanet’s third Bitcoin purchase within three months. The company first bought 97.85 Bitcoin in April, followed by 19.87 BTC in May.

Metaplanet is a Japanese public company that offers hospitality and technology services. It is the first publicly traded company on the Tokyo Stock Exchange to invest in Bitcoin. According to data from Google Finance, this latest purchase caused a 10% surge in its stock price, reaching ¥89.

Bitcoin’s institutional adoption

Metaplanet’s latest acquisition aligns with a growing trend of companies incorporating Bitcoin into their treasury assets.

Recently, two companies—Semler Scientific and DeFi Technologies—acquired nearly 1,000 BTC because they view the digital asset as a hedge against inflation and protection against monetary debasement.

Chris Kuiper, Director of Research at Fidelity Digital Assets, noted that it was logical for small and microcap companies to be early adopters of the asset. According to him, smaller companies have more stake than larger firms, and their early adoption of BTC mirrors a similar trend observed in certain countries.

He added:

“What also stands out to me is the similar language in these press releases of noting bitcoin’s characteristics as an inflation hedge or protection from monetary debasement. Both also noted the perceived gap in value.”

Meanwhile, these companies’ moves pale significantly against that of MicroStrategy, the largest corporate holder of the top crypto. The Michael Saylor-led company holds more than 210,00 Bitcoin, equivalent to over 1% of the digital asset’s total circulating supply.

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Japan-based Metaplanet has announced plans to purchase an additional ¥250 million (approximately $1.6 million) worth of Bitcoin.

The move has been approved by the company’s board and continues Metaplanet’s aggressive Bitcoin acquisition strategy.

Once this purchase is completed, Metaplanet’s Bitcoin holdings will increase significantly from its current 117.72 BTC — valued at ¥1.2 billion ($7.7 million).

Earlier this year, the firm declared Bitcoin a core treasury asset and said it would prioritize a Bitcoin-first and Bitcoin-only approach.

At the time, the company stated that it would initiate several financial options to accumulate BTC instead of holding on to the weakening yen.

Bitcoin management strategy

Metaplanet also outlined its approach to managing its Bitcoin holdings.

The company stated that any Bitcoin acquired for long-term investment will be recorded at its purchase cost. For short-term acquisitions, Bitcoin will be revalued quarterly based on market value.

It added that any unrealized gains or losses from these short-term holdings will be listed under non-operating income on the income statement. This approach ensures transparency and accurately reflects market changes.

Meanwhile, Metaplanet’s strategic focus on Bitcoin has significantly boosted its shares, according to Google Finance data. On the year-to-date metric, Metaplanet’s shares have surged by 287%.

Last week, Metaplanet’s share price climbed to 93 Japanese yen, nearing a $1 billion market cap. Dylan LeClair, the director of Bitcoin strategy, emphasized this achievement, noting that Metaplanet has been Japan’s top-performing stock for two consecutive days.

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Tokyo stock exchange-listed Metaplanet declared Bitcoin as its strategic reserve asset due to the current economic uncertainty pervading the Japanese economy, according to a May 13 statement.

The firm said:

“Metaplanet has adopted Bitcoin as its strategic treasury reserve asset. This move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen.”

Metaplanet justified this shift by highlighting Bitcoin’s advantages over the Japanese Yen, including protection against currency devaluation, opportunities for speculative arbitrage in capital markets, and leveraging Bitcoin’s tax benefits.

Meanwhile, the firm’s latest move has continued with several pro-BTC decisions in recent months. In April, the firm committed to Bitcoin as a core treasury asset, allocating ¥1 billion, around $6.56 million, to the flagship digital asset in a significant shift in its financial strategy.

Since then, the Japan-based firm has accumulated approximately 117.72 BTC, valued at 1.2 billion JPY or $7.7 million. It has also appointed Dylan LeClair, a staunch Bitcoin advocate, as its Director of Bitcoin Strategy.

Bitcoin-first approach

Metaplanet said it would prioritize a “Bitcoin-first [and] Bitcoin-only approach” for its operations.

According to the firm, this decision is rooted in its belief that the flagship digital asset is “fundamentally superior to any other forms of political currency, traditional stores of value and investment, and all other crypto-assets/securities.”

It continued that BTC’s blockchain reliance on the proof-of-work (PoW) consensus mechanism is advantageous as it “is intricately linked to real-world energy inputs, mirroring the cost conditions seen in traditional commodities.”

Metaplanet furthered:

“Bitcoin’s monetary policy is rigidly set in stone through 2140, setting it apart from both monetary metals and competing crypto projects operated at the whims of centralized developer teams. There will only ever be 21,000,000 BTC.”

Consequently, the Japanese public company stated that it would initiate several financial options, including periodic share issuance and long-dated yen liabilities, to accumulate BTC instead of retaining the “ever-weaker yen.”

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Japan-based Metaplanet has acquired additional Bitcoin, according to a May 10 disclosure statement on social media platform X.

The firm revealed that it bought 19.87 BTC on April 23 at an average price of 10.06 million yen, equivalent to $64,664 each. This purchase amounted to 200 million yen, approximately $1.28 million.

This acquisition brings Metaplanet’s total Bitcoin holdings to approximately 117.72 BTC, valued at 1.2 billion JPY or $7.7 million.

On April 8, Metaplanet committed to Bitcoin as a core treasury asset, allocating ¥1 billion, around $6.56 million, to the flagship digital asset in a significant shift in its financial strategy.

Shortly after, the firm fulfilled its commitment by purchasing 97.85 Bitcoin for 1 billion Japanese yen on April 24. It said its purchase was “not just about embracing digital assets but also about pioneering a future where finance meets innovation at its core.”

Additionally, it appointed Dylan LeClair, a staunch Bitcoin advocate, as its Director of Bitcoin Strategy. In this role, Dylan will lead the firm’s corporate Bitcoin strategy to acquire more Bitcoin in alignment with its vision.

Metaplanet is a Japanese public company offering hospitality and technology-related services. It is the first publicly traded company on the Tokyo Stock Exchange to purchase BTC.

According to Yahoo Finance data, Metaplanet’s share price increased by 3% to 30 yen following news of its BTC acquisition.

Asia’s MicroStrategy

Metaplanet’s BTC acquisitions firmly position it as the “MicroStrategy of Asia.”

MicroStrategy is the largest public holder of Bitcoin, holding more than 200,000 BTC, valued at over $13 billion. The software firm has consistently acquired its BTC as part of efforts to strengthen its balance sheet.

The company’s chairman, Michael Saylor, recently stated that the flagship digital asset was “the Best Alternative Investment.”

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