Metaplanet Raises 4.5 Billion JPY for Bitcoin, Stock Soars to Record High

Highlights:

• Metaplanet issued 4.5 billion JPY in zero-interest bonds to fund Bitcoin acquisitions, maturing in 2025.
• The firms’s stock prices soared to 4,270 JPY, boosting market cap to over $1 billion amid a significant trading volume.
• Future plans include issuing up to 5 billion JPY more in bonds to further enhance its capital operations.

Metaplanet, a Japanese listed company, has secured 4.5 billion JPY to buy Bitcoin. The company also issued zero-interest-bearing bonds that mature by June 2025 and are in the form of ordinary bonds. This strategic funding further shows Metaplanet’s increasing interest in Bitcoin acquisitions.

These bonds were offered to EVO FUND under Metaplanet’s 12th Series Stock Acquisition Rights. The company also intends to issue additional bonds amounting to 5 billion JPY in the near future. These will be either in one or several stages and the specific structure is still to be determined. The redemption of the bonds will be financed from the proceeds of previously issued warrants.

*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

Stock Price Hits New All-Time High

Metaplanet’s stock rose by 51% in the last five trading days. It rose to as high as 4,270 JPY, indicating that investors had high confidence in the company. For the year, the stock has rallied by 2,450%, thanks to its focus on the purchase of Bitcoin.

In a statement on X, CEO Simon Gerovich thanked shareholders for their contribution to the achievement of this performance marker, where the company recorded its best trading volume of 27.8 billion JPY. This is equivalent to about $180 million. Metaplanet also reached a market capitalization of $1 billion for the first time in the quarter.

Milestones Achieved Today 🚀

All-Time High: ¥4,270
Record Volume: ¥27.8B (~$180M)
Market Cap: $1B milestone reached

Thank you to all shareholders for being part of this journey! pic.twitter.com/f6rnuLaCd0

— Simon Gerovich (@gerovich) December 17, 2024

Metaplanet Strategic Bitcoin Expansion Continues

The company started its growth through the purchase of Bitcoin in May 2024. It has already pumped more than 1,000 BTC into its balance sheet in just a matter of weeks. In its bid to emulate MicroStrategy, Metaplanet plans to accumulate more Bitcoin using bonds.

In addition, the company’s shareholder program focused on Bitcoin has also found favor. Due to the cooperation with SBI VC Trade Co., Ltd., shareholders receive additional value in the form of Bitcoin incentives. This also raises the interest of investors and at the same time increases the value of shareholders.

*Details of Shareholder Benefit Program in Collaboration with SBI VC Trade* pic.twitter.com/3RioR37vQA

— Metaplanet Inc. (@Metaplanet_JP) December 2, 2024

Metaplanet’s zero-interest bond issuance shows it believes in the notion of the potential return on investment in Bitcoin. This also reduces the company’s financial risks in the short run. In this way, Metaplanet wants to achieve the maximum value of growth with the minimum resources possible.

Bitcoin Institutional Adoption Continues to Grow

In recent months, major firms have raised the bar in their acquisition of Bitcoins, suggesting institutional demand. A Bitcoin mining company, Riot Platforms, has increased its positions in digital currencies, buying 667 bitcoins for $67.5 million.

With the additional proceeds from Riot’s upsized $594 million, 0.75% coupon convertible bond issue, the Company has acquired 667 BTC at an average price of $101,135 per BTC. As a result, Riot has increased its holdings to 17,429 BTC, currently valued at $1.8 billion based on the… pic.twitter.com/t68Uy8nbHU

— Riot Platforms, Inc. (@RiotPlatforms) December 16, 2024

This acquisition supported by $594 million of 0.75% convertible bonds, will make Riot’s total bitcoin position to 17,429 BTC which is approximately $1.8 billion. Since commencing Bitcoin mining in 2018, the firm has sought to augment its BTC output by operating mines and purchasing BTC in the market, the latter accounting for 36.7% of the firm’s total production in the quarter.

Meanwhile, MicroStrategy keeps on increasing its Bitcoin holdings, currently owning more than 2% of all BTC in circulation. The company also recently bought 15,350 bitcoins for $1.5 billion, bringing the total to 439,000 Bitcoins. The acquisition spree led by Executive Chairman Michael Saylor has sought to use Bitcoin as an inflationary hedge, resulting in a 540% increase in its stock this year as a result of its high exposure to Bitcoin.

MicroStrategy has acquired 15,350 BTC for ~$1.5 billion at ~$100,386 per #bitcoin and has achieved BTC Yield of 46.4% QTD and 72.4% YTD. As of 12/15/2024, we hodl 439,000 $BTC acquired for ~$27.1 billion at ~$61,725 per bitcoin. $MSTR https://t.co/SaWLNBVkrl

— Michael Saylor⚡️ (@saylor) December 16, 2024

Also, in early December, another North American mining company called MARA Holdings bought 1,300 Bitcoin for $130 million. This comes after the company had recently closed an $850 million convertible note offering to enhance its Bitcoin purchase capacity. The decision is in line with a growing pattern of leading institutions buying bitcoins as a long-term investment.