Metaplanet said it negotiated a $6.8 million loan “with the entire amount allocated for purchasing bitcoin.”As of the start of July, Metaplanet held a total of 161.3 BTC ($9.2 million).
As a seasoned researcher with years of experience in the dynamic world of finance and technology, I find Metaplanet’s decision to secure a loan for purchasing bitcoin intriguing. Given my background, I can appreciate the strategic move to hedge against currency volatility, especially considering the historic volatility of the yen. This strategy mirrors that of MicroStrategy, a company I’ve followed closely in my career.Japanese financial advisor Metaplanet (ticker symbol 3350) has secured a 1 billion yen (approximately $6.8 million USD) loan to increase its holdings of bitcoin (BTC). This move comes after the company decided to include BTC as part of its reserve assets earlier in the year.

According to their official statement online, the company headquartered in Tokyo disclosed that they obtained a loan from MMXX Ventures, which is based in the British Virgin Islands. The entire sum was earmarked for buying bitcoin. This six-month loan comes with an annual interest rate of 0.1%.

Starting in May, Metaplanet announced their decision to keep bitcoin as a protective asset to counterbalance the fluctuations of the Japanese Yen. By early July, they had amassed a total of 161.3 Bitcoins, equivalent to approximately $9.2 million.

The business approach taken by the company resembles MicroStrategy’s (MSTR), a software developer, which has been purchasing Bitcoin for approximately four years now and currently owns over 226,000 Bitcoins, making up more than 1% of the total supply that will ever circulate.

On Thursday, Metplanet stock concluded at approximately $6.10 (893 yen), a 20% increase compared to its opening price, as Japanese equities persisted in rebounding from the previous week’s market downturn following the Bank of Japan’s interest rate rise.

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2024-08-08 13:25