Japan's Metaplanet Secures A $6.8 Million Loan To Increase Its Bitcoin Investments
This move aims to strategically increase the company's Bitcoin holdings as part of its broader growth strategy.
The Tokyo-listed investment company Metaplanet Inc. has obtained a loan of $6.8 million to enhance its Bitcoin holdings, highlighting its optimistic outlook on the long-term potential of the cryptocurrency. The company intends to invest almost the entire amount of the loan in Bitcoin, consistent with its strategy of maintaining the cryptocurrency as a primary asset, according to a news report by The Block.
Metaplanet has announced its board's approval for a loan of 1 billion yen (around $6.8 million) at a minimal annual interest rate of 0.1%. The company declared, "Our fundamental policy is to retain Bitcoin for the long term; however, should we deploy Bitcoin for operational purposes, the corresponding Bitcoin balance will be classified as a current asset in our balance sheet."
Metaplanet revealed plans to conduct a 10 billion yen ($68.4 million) gratis allotment of stock acquisition rights, with the majority of the raised funds earmarked for further Bitcoin purchases. This move aims to strategically increase the company's Bitcoin holdings as part of its broader growth strategy.
The recent developments come after Metaplanet's announcement in May to adopt Bitcoin as a strategic treasury reserve asset. This decision was influenced by Japan's economic challenges, such as government debt, extended periods of negative real interest rates, and a depreciating yen.
