Metaplanet has taken steps to acquire more bitcoins amid the Japanese Yen devaluation.
Following Monday’s crypto market crash, Japan-based public company Metaplanet took a loan of ¥1 billion (worth over $6.8 million) to increase its bitcoin stash. Following MicroStrategy’s footsteps, Metaplanet adopted Bitcoin as its primary reserve and has proactively acquired the cryptocurrency under different market conditions.
Metaplanet Takes Loan to Buy Bitcoin
Metaplanet announced on Thursday that after a just-concluded board meeting, it has agreed to borrow over $6.8 million from one of its famous shareholders, MMXX Ventures Limited. The statement reveals the company will invest the entire amount in its bitcoin acquisition strategy.
Interestingly, MMXX Ventures offered the loan to Metaplanet with no collateral. The loan is charged at 0.1% interest per annum and a term of six months from the execution day. Additionally, the Japanese company revealed that it would pay back the loan in a “lump sum” and not installmentally.
While Metaplanet has many options for companies to borrow from, the statement stated that it chose to deal with MMXX because it has built a relationship with the company over the years. With MMXX holding a chunk of Metaplanet’s shares, the loan execution will be fastened.
Metaplanet’s statement expressed conviction in the company’s latest borrowing move to acquire bitcoin: “While the loan will incur interest, we expect its impact on our consolidated result for the fiscal year ending December 2024 to be minimal.”
By taking loans and issuing stocks to acquire more bitcoins, Metaplanet has shown unshaken confidence in the future of bitcoin. Moreover, it exposes its investors to cryptocurrency and advocates adopting bitcoin in the Japanese financial market.
Metaplanet Reveals Bitcoin Hodl Plan
Earlier this year, Metaplanet announced an official switch in its treasury management to adopt bitcoin as its treasury reserve asset. Following the shift, the company adopted a “bitcoin-first, bitcoin-only” strategy instead of holding the Japanese Yen.
Concluding the August 8 statement, Metaplanet added, “Our basic policy is to hold Bitcoin long-term.”
U.S. business intelligence company MicroStrategy took the first step in adopting bitcoin as a reserve asset, paving the way for other companies to follow. As its co-founder revealed on Wednesday, it also plans to acquire and hold bitcoin for the long term.
