Key Points
- Metaplanet Inc, a Japan-based investment firm, plans to secure a $6.8 million loan to buy more Bitcoin (BTC).
- The firm remains bullish on Bitcoin, viewing it as a long-term value asset and integral to its growth strategy.
Metaplanet Inc, an investment firm based in Japan, is not holding back in its pursuit of acquiring more Bitcoin.
The Tokyo-listed company believes in Bitcoin’s long-term value and has made a surprising move to secure a loan of 1 billion yen ($6.8 million) at a 0.1% annual interest rate.
Metaplanet’s Bullish Stance on Bitcoin
The decision to take out the loan was made by Metaplanet’s board of directors due to the firm’s bullish stance on Bitcoin.
The firm plans to use almost the entire loan amount to purchase Bitcoin, as stated in their announcement.
Their statement read, “Our basic policy is to hold Bitcoin BTC long-term; however, if we utilize Bitcoin for operations, the applicable Bitcoin balance will be recorded as a current asset on the balance sheet.”
This loan news comes after a previous announcement by Metaplanet of a 10.08 billion yen ($68.4 million) Gratis Allotment of Stock Acquisition Rights.
This process involves the company allocating shares to shareholders who have applied for them.
Bitcoin Acquisition as a Growth Strategy
According to Metaplanet, the majority of the proceeds from this exercise will also be used to fund more Bitcoin purchases.
The Japanese firm sees its Bitcoin acquisitions as an essential part of its long-term growth strategy.
They believe that holding Bitcoin will not only improve its profitability over time but also contribute significantly to the growth of its corporate value.
Metaplanet had announced in May that it was shifting its focus to Bitcoin as a treasury reserve asset, citing the poor state of the Japanese economy, government debts, and the weak yen as the reasons behind this decision.
Since then, the company has made large BTC purchases, earning itself the nickname ‘Japan’s MicroStrategy’ due to its aggressive strategy that mirrors the high-profile Bitcoin accumulation of the American firm MicroStrategy.
While MicroStrategy is currently the world’s largest corporate holder of Bitcoin, with 226,500 BTC as of the last report, Metaplanet also appears to be on an upward trajectory with its assertive approach.
Metaplanet’s stock closed up 20.19% on Thursday after the Japan stock market experienced its worst day since 1987 on Monday with the Nikkei 225 index plummeting 12.4%. The Nikkei index closed down 0.74% today.
