Tokyo-listed company Metaplanet has announced its plans to issue 4.5 billion yen (approximately $30 million) worth of ordinary bonds to accelerate its Bitcoin purchases. This move is part of Metaplanet’s broader strategy, which mirrors MicroStrategy’s approach of accumulating Bitcoin as a key asset.
Zero-Interest Bonds with a Clear Purpose
The newly issued fourth series of ordinary bonds come with a zero interest rate, making them a smart choice for Metaplanet’s financial plans. These bonds will mature on June 16, 2025, giving the company enough time to carry out its Bitcoin purchase strategy.
*Metaplanet to issue 4.5 billion yen in Ordinary Bonds to Accelerate Bitcoin Purchases; Repayment to be made from Warrant Exercise Proceeds* pic.twitter.com/oS93rD7uXk
— Metaplanet Inc. (@Metaplanet_JP) December 17, 2024
What stands out is Metaplanet’s plan to repay these bonds using funds raised from previously issued warrants. This ensures a clear and structured way to manage its financial obligations without added pressure.
By choosing zero-interest bonds, Metaplanet is reducing its short-term financial burden while focusing on long-term growth. This innovative approach reflects the company’s confidence in Bitcoin’s potential growth, which is currently having a market cap of $2.12 trillion.
Secure Repayment Plan
To ensure confidence among investors, Metaplanet has adopted a structured repayment approach. The company plans to use proceeds from warrant exercises to repay these bonds. By recycling its capital this way, Metaplanet showcases its ability to balance financial innovation with responsibility.
This method not only secures bondholders but also highlights the company’s focus on sustainable capital management.
However, this isn’t the first time Metaplanet has issued such a bond. In its earlier move, Metaplanet announced the issuance of one-year ordinary bonds worth 1.75 billion yen ($11.3 million) at an annual interest rate of 0.36%.
The entire amount raised was dedicated to acquiring Bitcoin, highlighting the company’s clear strategy to strengthen its BTC reserves.
However, Metaplanet began its Bitcoin buying journey in April this year, positioning it as a hedge against Japan’s growing debt issues and the yen’s volatility. So far, the company has bought 1,142 BTC, which is currently valued at around $122.67 million.
