On July 16, Metaplanet Inc., a publicly traded company on the Tokyo Stock Exchange (TSE: 3350), announced the purchase of another 21.88 BTC worth over $1.2 million (200 million Japanese yen).
Metaplanet Inc., headquartered in Tokyo, Japan, is a multifaceted company that engages in diverse industries, primarily focusing on technology and finance. The company is publicly traded on the Tokyo Stock Exchange under the code 3350. Metaplanet is known for its forward-thinking strategies and investments, including ventures into emerging financial technologies like cryptocurrencies.
According to Metaplanet’s latest announcement, the firm’s total Bitcoin holdings now stand at 225.6 BTC, valued at approximately $14.6 million. This recent purchase aligns with Metaplanet’s continued strategy to capitalize on Bitcoin’s price movements. On July 7, the firm took advantage of a price dip, acquiring 42.46 BTC for $2.5 million (400 million yen).
The acquisition has had a notable impact on Metaplanet’s stock price. Over the last 24 hours, Bitcoin’s price has increased by 2%, driving Metaplanet’s share price up by 9.68% to $0.64 (102 yen) today on the Tokyo Stock Exchange. This surge is part of a broader upward trend since the firm revealed its Bitcoin investment strategy on 9 April 2024, resulting in a 436% increase in its stock price.
Despite the impressive growth in stock value, Metaplanet’s return on its Bitcoin holdings remains modest at 2.58%, considering its average purchase price of $62,890 per Bitcoin.
The Japanese firm announced on 24 June 2024 that its Board of Directors has approved the issuance of its second series of ordinary guaranteed bonds, which will be allocated to EVO FUND. The issuance aims to raise ¥1 billion, with each bond valued at ¥50 million and carrying an annual interest rate of 0.5%. These bonds will be utilized to purchase Bitcoin, with payment due on 26 June 2024 and redemption set for 25 June 2025.
The principal, interest, and any obligations of these bonds are guaranteed by Metaplanet’s Representative Director and President, Simon Gerovich, under a contract that also establishes a first-priority mortgage on Hotel Royal Oak Gotanda, owned by the company’s subsidiary, Wen Tokyo Inc., as collateral. No bond administrator will be appointed as the issuance meets specific regulatory requirements.
Metaplanet does not expect this bond issuance to significantly impact its consolidated performance for the fiscal year ending December 2024. If any significant impact is anticipated, the company will provide timely updates.
In the year-to-date period, the company’s share price has gone up over 537%.
Featured Image via Pixabay
