Metaplanet, often called “Japan’s MicroStrategy,” saw its stock price soar 51% on December 17. This happened when the company, an early-stage investment firm, announced a plan to issue ¥4.5 billion ($30 million) worth of bonds. The aim is to fund additional Bitcoin purchases. These zero-interest bonds will mature on June 16, 2025. They’ll be released in tranches, with each bond valued at 2.5 billion yen. This shows the firm’s strong commitment to Bitcoin as part of its growth strategy.
How Zero-Interest Bonds Work
Zero-interest bonds are debt securities. They don’t give out periodic interest. Instead, they’re sold at a discount to their face value. Investors make a profit when they get the full face value of the bonds at maturity. In Metaplanet’s case, that’s in 2025. And Metaplanet will use the funds from these bonds to buy more Bitcoin.
Metaplanet’s Bitcoin Journey
Since May 2024, when Metaplanet adopted Bitcoin as its treasury reserve asset, it has acquired over 1,000 BTC. This big accumulation of Bitcoin has earned it the nickname “Japanese MicroStrategy,” as it’s similar to the American tech giant known for its large Bitcoin holdings.
Impact on Stock Price
The effect on Metaplanet’s stock has been remarkable. After the bond issuance announcement, share prices shot up to a new all-time high of 4,270 JPY. That’s a 51% increase in just five trading days. Moreover, since January 2024, the stock has skyrocketed by 2,450%. This shows how much investors trust the company’s bold Bitcoin-focused strategy.
Soaring Trading Volume and Market Cap
Apart from the rising stock price, Metaplanet has also seen a huge spike in trading volume. Over 27.8 billion yen (about $180 million) worth of shares were traded. This signals strong market interest in the company’s future. Thanks to this activity, Metaplanet’s market capitalization has gone beyond the $1 billion mark. Simon Gerovich, the CEO of Metaplanet, said the record trading volume and the rise in the stock price show the growing excitement in the market about its Bitcoin-driven strategy.
Future Bond Plans
Looking ahead, Metaplanet has plans to issue additional ordinary bonds through private placement. It might raise 5 billion yen. The details like interest rates and maturity dates aren’t finalized yet. But the company’s main idea is to expand its Bitcoin holdings and make the most of the market interest.
Valuation Gain in Bitcoin Holdings
Just weeks before these recent developments, on November 13, Metaplanet reported a $28 million valuation gain in its Bitcoin holdings. This has strengthened its reputation as one of Asia’s leading corporate Bitcoin holders.
Shareholder Bitcoin Reward Program
Metaplanet is also getting more attention with a new initiative to reward its shareholders. On December 2, it launched a Bitcoin reward program. There’s a prize pool of 30 million yen (around $199,500). Shareholders who own at least 100 shares as of December 31, 2024, can benefit. 2,350 shareholders will be chosen through a lottery, and they’ll get varying prize amounts in Bitcoin. This gives Metaplanet’s investors a chance to get a real reward from the company’s focus on Bitcoin, which has been key to its recent success. And new account holders with SBI Holdings’ crypto division can also take part in the reward program.
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