Japanese IPO to Increase Bitcoin Holdings by Issuing Bonds

Metaplanet Inc., a Japanese investment firm, announced Monday that its board of directors decided to buy Bitcoin worth about $6.26 billion (¥1 billion) using capital raised through a round of issue of bonds.

This announcement led to a sharp 12% increase in Metaplanet’s stock price, indicating community approval of these purchases.

More Bitcoin purchases for Metaplanet

In a press statement released on June 24, the Tokyo-listed investment company mentioned that its board has decided to buy more Bitcoin. According to the statement, Metaplanet will make the additional investment by issuing series two ordinary bonds with guarantees.

In a separate statement, the company, also known as Asian MicroStrategy, announced that the bonds will attract interest of approximately 0.5% per annum and mature on June 25, 2025. The company also set the date payment of the bonds on June 26. 2024.

At the prevailing bitcoin price, the new injection of the bond issue will represent an investment of almost 100 BTC.

Metaplanet stated that Bitcoin intended for long-term holding will be recorded at cost, exempting it from market value assessment tax at the end of the term. The remaining BTC holdings will be valued at market value each quarter, and any valuation gains or losses will be reflected in the income statement in non-operating income or expense.

The company only emphasized that Bitcoin will be treated as a current asset during financial reporting at the end of the fiscal year.

As previously reported, Metaplanet bought BTC on April 23rd, May 10th, and June 11th. In the last acquisition, the company bought approximately 23,351 BTC. At the time of this report, Metaplanet has over 141 BTC as part of its investment portfolio.

Increased metaplanet stocks

After the announcement, the Tokyo-listed company’s share price shot through the roof, gaining more than 12% in a few hours. Metaplanet shares have gained more than 8 yen since the announcement, a testament to community support for the decision, according to data from Google Finance.

Metaplanet shares have gained about 67% in value in the past month alone, representing ¥38. Since first buying BTC just two months ago, its stock has increased fivefold.

Like other companies investing in BTC, Metaplanet sees the investment potential in this asset. Metaplanet’s BTC purchases average $65,365, slightly higher than BTC’s current price of $61,300. However, it is more than $8,000 below BTC’s all-time high of over $73,000.

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