Metaplanet Secures $6.3 Million Worth of Bitcoin through Bond Sales
In a recent announcement, Japanese investment firm Metaplanet revealed its plans to acquire Bitcoin valued at 1 billion yen ($6.3 million). The company stated that the funds for this purchase will come from a recent bond sale.
Often referred to as “Asia’s MicroStrategy,” Metaplanet stated that its Bitcoin holdings, intended for long-term retention, will be recorded at their acquisition cost. As a result, these holdings will be exempt from taxation based on end-of-term market value assessments.
Additionally, the company stated that its other Bitcoin holdings will be evaluated at market prices every quarter. Any gains or losses resulting from these evaluations will be recorded as non-operating income or expenses.
Metaplanet’s primary strategy is to hold onto Bitcoin for the long term. However, if the cryptocurrency is used for operational purposes or other uses, the equivalent balance will be classified as current assets on the balance sheet.
Prior to this recent acquisition, Metaplanet had already made three separate purchases of Bitcoin in just seven weeks. Its most recent purchase was 23.25 Bitcoin, valued at approximately $1.59 million. This increased the company’s total Bitcoin holdings to 141.07 BTC. With the latest purchase, its total holdings will exceed 240 BTC ($15 million).
Metaplanet’s decision to invest in Bitcoin is primarily driven by the need to hedge against Japan’s growing debt burden and the declining value of the yen. The country’s high government debt and persistent negative interest rates highlight the fiscal challenges it faces.
The company’s stock price also saw a significant increase of nearly 14% on Monday, marking a 37% increase over the past month. With its recent Bitcoin purchases, Metaplanet now ranks as the 30th largest corporate Bitcoin holder globally, according to Bitcoin Treasuries.
While Metaplanet’s Bitcoin holdings are relatively modest compared to MicroStrategy’s 226,331 BTC balance, its commitment to integrating Bitcoin into its treasury assets has garnered significant attention.
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