Metaplanet Raises 9.5 Billion Yen for Accelerated Bitcoin Purchases Through Bond Issuance

Japanese investment firm Metaplanet Inc. has raised 9.5 billion yen ($60.6 million) through two tranches of bond issuance aimed at accelerating its Bitcoin purchases.

The Tokyo-listed company announced it issued a 5 billion yen ($31.9 million) bond on Friday, following a 4.5 billion yen ($28.7 million) bond issuance earlier in the week.

Both bonds are zero-interest and set to mature on June 16, 2025.

New Funds to Allow Metaplanet Accelerate Bitcoin Plans

According to Metaplanet CEO Simon Gerovich, the funds will allow the company to expedite its planned 2025 Bitcoin acquisitions into the current fiscal year.

The move is part of Metaplanet’s broader strategy to adopt Bitcoin as a key treasury reserve asset, a shift it first announced in May.

As of December 18, the firm held approximately 1,142.287 BTC, valued at about $110.3 million at current market prices.

Despite the ambitious move, Metaplanet’s stock on the Tokyo Stock Exchange fell 4.24% to close at 3,610 yen on Friday.

*Metaplanet to issue 5.0 billion yen in Ordinary Bonds to Accelerate Bitcoin Purchases; Repayment to be made from Warrant Exercise Proceeds* pic.twitter.com/9Sr6a5kDkD

— Metaplanet Inc. (@Metaplanet_JP) December 20, 2024

However, its stock price has seen a meteoric 2,023% increase year-to-date. Shares also began trading on the U.S. OTCQX market this week, closing down 9.96% on their first day, according to Google Finance.

Metaplanet’s aggressive Bitcoin strategy mirrors moves by major firms like MicroStrategy, which remains the largest public corporate holder of Bitcoin with 439,000 BTC, according to BitcoinTreasuries.

Metaplanet Anticipates First Operating Profit in Seven Years

Asreported, Metaplanet is poised to achieve its first consolidated operating profit in seven years, just months after incorporating Bitcoin into its balance sheet.

The Tokyo-based firm announced earlier this week that it expects to generate 890 million Japanese yen ($5.8 million) in revenue for the fiscal year ending December 31, a significant increase from the 261 million yen recorded in the previous fiscal year.

The company’s operating profit is projected to reach 270 million yen, a sharp turnaround from the 468 million yen loss it suffered last year.

A substantial portion of Metaplanet’s revenue comes from its Bitcoin-related activities, particularly its strategy of selling Bitcoin put options.

This approach generated 520 million yen in income, making it a key driver of the company’s improved financial outlook.

Put options allow investors to sell an asset at a pre-agreed strike price, and Metaplanet earns a premium for each contract sold, regardless of whether the option is exercised.

If exercised, the company can acquire Bitcoin at the agreed price, aligning with its broader strategy of accumulating the cryptocurrency.

The firm’s decision to adopt Bitcoin as a treasury asset began in April, part of a shift aimed at hedging against currency depreciation.

Beyond its Bitcoin-related activities, Metaplanet’s hotel business has also played a role in its improved financial performance.

Through its subsidiary, Wen Tokyo Co., the company operates the Royal Oak Hotel in Tokyo’s Gotanda district.

The combined success of its hotel operations and Bitcoin strategy has put the company on track to achieve profitability for the first time since 2017.