Japanese investment firm Metaplanet Inc. saw a significant rise in its stock price, jumping over 12% on Monday morning. This surge resulted from the company’s revelation that its board of directors has endorsed a decision to buy one billion yen worth of bitcoins, or approximately $6.26 million. The funds for this acquisition will be generated via an upcoming bond offer to be floated soon.
On Monday, the Tokyo-listed company announced its intention to purchase more Bitcoins through a statement. This will be done through the public offering of a second series of guaranteed ordinary bonds. The 1 billion yen bonds will also be registered, with interest at the rate of 0. 5%, and will mature on June 25, 2025. The bonds are due for payment on June 26, 2024. Buying Bitcoin will use the funds that will be raised through the public, said Metaplanet.
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Stock Surge and Previous Bitcoin Investments
Google Finance said Metaplanet’s stock surged approximately 12.2% in the morning session. This recent move to issue bonds for bitcoin purchases follows the company’s acquisition of an additional 250 million yen earlier this month. The firm said it had about 141.07 BTC on June 11 after releasing its first-quarter earnings report. Data from Bitcointreasuries also confirms that Metaplanet had bought bitcoin on April 23, May 10, and June 11.
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The economic conditions in Japan led the company to navigate its strategic management by using Bitcoin as a treasury reserve asset. So, in May, Metaplanet officially declared the company’s treasury management strategy change.
Purchasing Prospective and Key Strategies
The actions of Metaplanet can be seen as an indication of an increasing trend of using cryptocurrencies as part of various companies’ treasury reserves. Some companies like Metaplanet consider it possible to use bonds to obtain capital to invest in bitcoins, specifically to purchase bitcoin with the hope of long-term profitability of digital currencies.
To sum up, it is rather sensible to consider Metaplanet Inc.’s idea to use bond issuance to acquire bitcoins – evidence of the new efficiencies in corporate finance approaches. The latest bond offering immediately followed by buying bitcoins shows that Metaplanet is not averse to experimenting with its financial aspects.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.