- The company is sticking to its plan to hoard Bitcoin and protect itself from exchange rate fluctuations.
- A loan of one billion yen was obtained by Metaplanet at a very low interest rate of 0.1% APR.
- The way that Metaplanet is acting makes it quite evident that it is firmly committed to Bitcoin as part of its business model.
Today, the publicly traded Japanese business Metaplanet—often likened to MicroStrategy—announced that it had obtained a one billion yen loan. The company’s most recent Board of Directors meeting approved the decision to use the entire loan amount for the purchase of Bitcoin.
The loan was taken out from MMXX Ventures Limited. It has a six-month duration, a 0.1% annual interest rate, and a lump sum repayment requirement.
The news was made the day after the business said that it intended to use a stock rights offering to raise roughly $70 million, of which about $58 million would be allocated for Bitcoin investments.
By utilizing debt and equity funding to increase their Bitcoin holdings, Metaplanet has shown that they have a lot of faith in the cryptocurrency. The company’s approach is based on the Bitcoin playbook developed by MicroStrategy, which has been accumulating Bitcoin since 2020.
With the weakening yen and the amount of government debt in Japan, among other economic issues, Metaplanet sees Bitcoin as a long-term investment and a hedge against currency devaluation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
