Metaplanet to Acquire Bitcoin Using Proceeds From Bonds Offering

Metaplanet, a Japanese early-stage investment firm, has informed the public that it will be purchasing Bitcoin worth 1 billion Yen (approximately $6.3 million)

Japanese early-stage investment firm Metaplanet has announced that it will be purchasing Bitcoin to the tune of 1 billion Yen (roughly $6.3 million). The announcement was made on Monday, June 24.

According to the statement, the capital used for the Bitcoin purchase will be obtained from an upcoming bond sale, which is set to take place on June 26. The news comes amidst a global crypto market downtrend, which saw about 2.76% being wiped out of the total market cap as of Monday.

Interestingly, Metaplanet stock price jumped by 12% following the announcement from its board of directors.

Metaplanet to Acquire Bitcoin Using Proceeds From Bonds Offering

The investment giant company stated on Monday that it has resolved to increase its Bitcoin holdings by adding another $6.3 billion worth of the asset to its portfolio. Metaplanet disclosed that the capital raised from the sale of the second series of ordinary bonds will be allocated towards this purpose.

In a separate statement, Metaplanet revealed that the total amount of bonds equaling 1 billion Yen will come with an annual interest rate of 0.5%. The payment date starts on June 26 and will mature on June 25, 2025. Each bond will be sold at 50 million Yen and the redemption amount will be 100 Yen per bond for each 100 Yen of the bond amount.

Metaplanet Eyes Long-term Investment

Meanwhile, the investment firm said that it plans to hold Bitcoin long-term, and the coins purchased will be recorded at their acquisition cost. These holdings will not be taxed as per the end-of-term market value assessment.

“The balance of Bitcoin held will be recorded at cost for those intended for long-term holding that is exempt from end-of-term market value assessment taxation,” the statement reads.

In addition to this, Metaplanet said that other BTC holdings will be assessed at market value each quarter of the year. The gains and losses realized will be recorded under “non-operating income or expenses” in their income statement report.

To recap, Metaplanet had previously purchased about 250 million Yen ($1.6 million) worth of Bitcoin earlier this this month. Moreover, the company also acquired Bitcoin on April 23, May 10, and June 11. According to data from Bitcointreasuries.net, the company now holds a total of 240 BTC (valued at $15 million).

The recent investment in Bitcoin is part of its broader strategy of adopting the asset as a strategic treasury reserve asset, as announced in May. Ultimately, Metaplanet now becomes the 30th largest Bitcoin corporate holder in the world.