Metaplanet Secures ¥1 Billion Yen Loan To Purchase Bitcoin
Japanese investment firm Metaplanet has taken out a ¥1 billion ($6.8 million) loan to further increase its Bitcoin holdings.
Metaplanet’s announcement comes two days after the firm disclosed its plan to invest $58 million in Bitcoin via a stock rights offering.
Key points of Metaplanet’s recent actions:
- Secured a 1 billion yen ($6.8 million) loan from shareholder MMXX Ventures
- Loan terms: 0.1% annual interest rate, six-month duration.
- Potential to acquire approximately 118.6 Bitcoin at current market prices
- Follows the announcement of a $70 million stock rights offering, with $58 million earmarked for Bitcoin.
The loan is provided by MMXX Ventures and comes with a mere 0.1% annual interest rate and a short six-month repayment period.
Also read: XRP Surges 17% After Ripple Is Fined $125 Million in SEC Case
Metaplanet currently holds 246 Bitcoin
Metaplanet’s CEO, Simon Gerovich, has been vocal about the company’s motivations. He cited concerns over Japan’s growing debt burden and the weakening yen as primary drivers for their Bitcoin strategy.
At the recent Bitcoin 2024 conference, Gerovich revealed that Metaplanet was once a “zombie” company, struggling with debt and a weak balance sheet.
Since adopting its Bitcoin strategy in April, Metaplanet has made seven separate purchases. The firm has accumulated 246 Bitcoin worth approximately $13.95 million at current market prices, according to Bitcoin Treasuries.
