Metaplanet Secures ¥1B Loan to Purchase Additional Bitcoin

This comes just days after announcing plans to raise ¥10.08 billion through a stock rights offering, mostly for Bitcoin buys.

Japanese investment firm Metaplanet has secured a ¥1 billion ($6.8 million) loan to purchase additional Bitcoin.

This comes just days after announcing plans to raise ¥10.08 billion through a stock rights offering, mostly for Bitcoin buys.

Having first revealed its Bitcoin treasury strategy in May, aiming to hedge against yen depreciation, the firm currently holds around 246 Bitcoins (around $14 million) acquired over many buys.

The 0.1% APR loan from shareholder MMXX Ventures has a 6-month term. Metaplanet plans to allocate the entire ¥1 billion to expand its Bitcoin reserves.

At current prices, ¥1 billion could purchase around 118 additional bitcoins. This mimics MicroStrategy's strategy of raising debt to fund Bitcoin purchases since 2020. MicroStrategy's bitcoin bet has increased its share price dramatically.

CEO Simon Gerovich stated that the firm believes Bitcoin offers twin benefits as an asset that can appreciate and hedge against a weakening yen.

“We believe that Bitcoin has the potential to appreciate in value over time, and it can also serve as a hedge against a weakening yen. By securing loans and using the proceeds to purchase additional Bitcoin, we aim to enhance our overall financial position and contribute to the growth of the digital asset industry in Japan.”

By securing loans and issuing stock to accumulate bitcoin, Metaplanet is essentially borrowing yen to stack sats. The company can pay back loans using future Bitcoin appreciation.

The loan and planned stock offering highlight Metaplanet's commitment to aggressively growing its Bitcoin war chest. As a public company, this strategy indirectly exposes Japanese investors to Bitcoin.