Tokyo-listed Metaplanet has generated roughly $50 million via zero interest bonds solely aimed at acquiring more Bitcoin.
According to the announcement made on Friday, the company continues implementing its ambitious plans for expansion amid the volatile crypto environment.
The capital is being raised as part of the 20th ordinary bonds series of Metaplanet to be issued to EVO FUND – one of the company’s important financial partners who have consistently assisted Metaplanet in raising funds in connection with its cryptocurrencies.
It should be mentioned that for such a large company like Metaplanet, buying Bitcoin when its price remains quite low may be a wise and profitable decision.
Metaplanet’s bonds
Since Metaplanet’s securities do not attract any interest charges, they represent a relatively inexpensive method of raising capital. The bonds issued by Metaplanet are expected to expire in April 2027 when Metaplanet will have to pay back the whole amount in face value.
On the other hand, EVO FUND has the right to prematurely redeem the debt with at least five business days’ prior notice. Similarly, Metaplanet may exercise its right to make premature redemption in the event that the company completes similar financial transactions with the same investor.
Practically speaking, the arrangement enables Metaplanet to obtain inexpensive funding and utilize the funds to purchase Bitcoin coins.
It is noteworthy that this represents the growing trend whereby Metaplanet uses capital market sources such as debt and equity as opposed to profits generated from operations to fund growth in its crypto assets.
In this case, since the start of 2023, Metaplanet has purchased more than 5,000 Bitcoin coins. As of now, the company holds around 40,177 coins which make it one of the biggest corporate owners of Bitcoin globally, alongside MicroStrategy.
Even as Bitcoin trades around the $77,000 level and broader crypto markets remain volatile, Metaplanet is signalling that it is committed to continuing its accumulation strategy through market cycles rather than pausing during downturns.
Metaplanet’s share still down
Investor reaction to Metaplanet’s new bond sale has been mixed, despite the hopes of the firm buying more Bitcoin.
Post the announcement, the shares of Metaplanet dropped by 3.7 percent. This was due to the increased use of borrowings in order to gain exposure to cryptocurrencies.
The firm, on its part, claims that the effect on its bottom line from this bond issuance will be negligible in FY 2026. In case there are any major developments, the company will keep the stakeholders informed, thus implying that it knows the possible dangers involved but continues with its strategy of holding a portfolio loaded with Bitcoin.