Tokyo-based investment firm Metaplanet has unveiled plans to issue ordinary bonds worth 1.75 billion yen (over $11 million) to fund additional Bitcoin acquisitions, according to a Nov. 18 statement.
The bonds come with an annual interest rate of 0.36% and a maturity date of Nov. 17, 2025. They have been exclusively allocated to EVO FUND, an investment management entity with significant ownership in Metaplanet.
Although the bonds are not directly collateralized, they are secured through the land and building of Hotel Royal Oak Gotanda. This property, owned by Metaplanet’s subsidiary Wen Tokyo, is protected by a first-priority mortgage. The arrangement ensures coverage for any potential claims by bondholders.
Metaplanet’s bond issuance mirrors a playbook famously used by MicroStrategy, which is known for leveraging debt to expand its Bitcoin holdings. The Michael Saylor-led company recently disclosed plans to raise $42 billion for further Bitcoin investments. MicroStrategy remains the largest publicly traded Bitcoin holder, with 279,420 BTC valued at around $26 billion.
Since April, Metaplanet has been actively acquiring Bitcoin to diversify its reserve and hedge against Japan’s economic woes. According to Bitcoin Treasuries data, the firm has accumulated 1,018 BTC, valued at $92.33 million.
This aggressive Bitcoin acquisition strategy has positively impacted Metaplanet’s stock. Data from Google Finance shows that its share price has skyrocketed by about 1,150% since the start of the year.
Shareholde benefits
Beyond its Bitcoin investments, Metaplanet recently launched a Shareholder Benefits Program to enhance shareholder engagement and attract long-term investors.
The program offers exclusive rewards, including Bitcoin lotteries, discounted tickets to crypto events, and access to curated experiences tied to the Bitcoin ecosystem. These benefits aim to increase the appeal of holding Metaplanet’s stock over the medium to long term while fostering more robust relationships with its investors.
The Bitcoin investing company stated that the program will commence for shareholders listed on its shareholder register as of Dec. 31, 2024.