Metaplanet, a publicly traded Japanese company, has bought another ¥500 million ($3.7 million) worth of bitcoins. This latest purchase comes after the company secured a 1 billion yen loan last week to acquire bitcoins.
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BREAKING NEWS: Japanese public company Metaplanet buys another ¥500 million of shares twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin image.twitter.com/utiXEwsymM
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1825698069423468661?ref_src=twsrc%5Etfw”>August 20, 2024
Metaplanet purchased 57,273 bitcoins at an average price of ¥8.73 million per bitcoin. This brings its total bitcoin holdings to 360,368 bitcoins purchased for ¥3.45 billion (USD 25.6 million).
Metaplanet first announced plans to raise ¥10.08 billion through a public offering to fund bitcoin purchases on August 6. A week later, it secured a ¥1 billion loan to purchase bitcoin, which it has already used to purchase over 100 bitcoin so far.
The Japanese firm is aggressively expanding its bitcoin reserves by borrowing capital at low interest rates. This mimics MicroStrategy's “bitcoin buying strategy,” which since 2020 has sold debt and equity to accumulate more than 226,500 Bitcoins in treasury.
Other public bitcoin buyers that have raised capital recently include Marathon Digital Holdings, which sold $300 million in convertible bonds to buy bitcoin. Semler Scientific also issued equity and debt in part to buy bitcoin.
Metaplanet’s series of loans and stock offerings to fund bitcoin purchases illustrates how public companies are using markets to accumulate sats. With bitcoin gaining mainstream acceptance, companies are treating it as a treasury reserve asset.
Disclaimer: bitcoin Magazine is wholly owned by btc Inc., which also operates UTXO Managementa regulated capital allocator focused on the digital asset industry and invested in Metaplanet. UTXO invests in a variety of bitcoin businesses and holds significant stakes in digital assets.
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