As a seasoned crypto investor with a keen interest in following Japanese market trends, I’m thrilled to see Metaplanet Inc.’s latest move towards Bitcoin investment. Their strategic decision to allocate capital raised through bond issuances towards purchasing Bitcoin is an encouraging sign for the broader crypto community.
Metaplanet Inc., a Japanese investment company, revealed on Monday that their board made the decision to buy approximately 45.8 Bitcoins, equivalent to around 1 billion Yen or $6.26 million, utilizing funds obtained from a recent bond offering.
As an analyst, I’d interpret this occurrence by saying that the announcement led to a significant increase of 12% in Metaplanet’s stock price, reflecting approval from the community regarding these acquisitions.
More Bitcoin Buys for Metaplanet
On June 24, Metaplanet, a publicly traded investment firm based in Tokyo, announced through a press release that its board had decided to acquire more Bitcoin. The company intends to finance this new investment by emitting Series Two Ordinary Bonds guaranteed by another entity.
The Asian MicroStrategy Company has revealed that the bonds in question will offer an annual interest rate of approximately 0.5% and are scheduled to mature on June 25, 2025. Furthermore, the bond payments are planned for June 26, 2024.
Given the current price of bitcoin, investing around 100 coins will be possible with the fresh funds from the bond issuance.
Metaplanet announced that for tax purposes, the value of Bitcoin held for the long term is recorded based on the initial purchase cost, shielding it from taxes imposed on market value appreciation at the end of the holding period. In contrast, the quarterly assessments of other Bitcoin holdings will be determined by current market values, with any resulting gains or losses reported under non-operating income or expenses in the income statement.
During financial reporting at the close of the fiscal year, the firm specifically noted that Bitcoins would be classified as present-day assets.
Previously mentioned, Metaplanet obtained Bitcoins on the dates of April 23rd, May 10th, and June 11th. In their most recent transaction, they acquired around 23.351 BTC. Currently, Metaplanet’s investment portfolio includes over 141 Bitcoins.
Metaplanet Stock Surges
After the announcement was made, the value of Metaplanet’s stocks listed in Tokyo soared dramatically, registering a rise of more than 12% within hours. As per Google Finance statistics, the price of Metaplanet’s stock has risen by over 8 Yen post-announcement, demonstrating the strong approval of the community for this decision.
I’ve seen remarkable growth in Metaplanet’s stock over the past month. It has soared by approximately 67%, which translates to a significant gain of around 38 Yen for every unit I own. Amazingly enough, since I made my first purchase of Bitcoin just two short months ago, Metaplanet’s stock has experienced an incredible fivefold increase.
Metaplanet, like many other businesses, recognizes the investment opportunity in Bitcoin (BTC). The company’s average Bitcoin purchases amount to roughly $65,365 each time, which is slightly more than the current BTC price of around $61,300. However, this is still significantly lower than the all-time high for BTC, which was over $73,000.
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2024-06-25 01:22