Japan's Metaplanet Secures $6.8 Million Loan to Expand Bitcoin Holdings

Investment firm Metaplanet Inc. has announced the acquisition of a $6.8 million loan aimed at purchasing additional Bitcoin. This move underscores the company's confidence in the long-term value of the cryptocurrency.

Loan Details and Allocation

Metaplanet’s board of directors approved the loan, which totals 1 billion yen ($6.8 million) at an annual interest rate of 0.1%. According to the company’s statement, the funds will be primarily allocated to acquiring Bitcoin. "Our basic policy is to hold Bitcoin long-term; however, if we utilize Bitcoin for operations, the applicable Bitcoin balance will be recorded as a current asset on the balance sheet," the company said.

Strategic Stock Acquisition Rights

This announcement follows the firm’s recent decision to conduct a 10 billion yen ($68.4 million) gratis allotment of stock acquisition rights. A significant portion of the capital raised from this initiative will also be used to purchase Bitcoin. Metaplanet believes that holding Bitcoin as a core asset aligns with its long-term growth strategy and will significantly enhance its profitability and corporate value.

Bitcoin as a Treasury Reserve Asset

In May, Metaplanet began adopting Bitcoin as its strategic treasury reserve asset. The company cited sustained economic pressures in Japan, such as high government debt levels, prolonged periods of negative real interest rates, and a weak yen, as factors influencing this decision.

Market Reaction

Following the announcement, Metaplanet's stock surged by 20.2%. This rise came after a challenging start to the week for the Japanese stock market, where the Nikkei 225 index experienced a significant drop of 12.4%, marking its worst day since 1987. The Nikkei index closed down 0.74% today.