Metaplanet issues $50M in new debt to buy more Bitcoin

Japanese investment firm Metaplanet is raising $50 million through a private placement of zero-interest bonds as part of its ongoing strategy to increase its Bitcoin exposure. In a May 28 announcement , the company that it was raising $50 million through bonds. The bonds are issued in $1.25 million denominations and carry no interest. Investors will not receive regular payments, with any potential profit expected to come from the bond’s redemption value. Evo Fund, a Cayman Islands-based investment firm, will be the sole bondholder. The investment company has been Metaplanet’s primary backer for its Bitcoin acquisition strategy, subscribing to multiple rounds of Metaplanet’s zero-interest bonds, providing capital for its Bitcoin ( BTC ) buys. The bonds are unsecured and unguaranteed, having neither a bond administrator nor collateral. This reflects a high degree of trust between the two companies. It also shows confidence in BTC’s long-term outlook as Metaplanet continues to increase its holdings. Excerpt of Metaplanet’s announcement to issue zero-interest bonds to buy Bitcoin. Source: Metaplanet Metaplanet expects minimal impact on 2025 results Metaplanet said the issuance is expected to have minimal impact on its 2025 financial results. However, the company noted it would disclose further developments if needed. Metaplanet’s push into Bitcoin highlights a growing trend among companies seeking alternatives to fiat-based treasury strategies. The move follows Metaplanet’s second-biggest BTC purchase , scooping up 1,004 Bitcoin worth over $100 million. This pushed the company’s Bitcoin holdings to 7,800 BTC, worth over $800 million. According to BitcoinTreasuries.NET, Metaplanet is up by nearly 20% on its Bitcoin investments. Metaplanet’s Bitcoin strategy has also given its stock prices a boost . On May 27, 10x Research reported that Metaplanet’s stock trades as if Bitcoin were worth five times its actual price. The research company said investors in the company are “dramatically overpaying for their Bitcoin exposure.” Related: Bitcoin treasury pivot lifts luxury watchmaker’s stock more than 60% Bitcoin Treasury strategy attracts criticism With the rise of Bitcoin treasury companies’ stock prices, getting Bitcoin exposure through corporate wrappers has attracted criticism from well-known investor Jim Chanos. At the Sohn Investment Conference in New York, Chanos said he’s selling MicroStrategy stock to buy Bitcoin. Chanos’ move assumes investors are overpaying for BTC exposure through MicroStrategy and other firms that follow the same blueprint. The investor’s move assumes that purchasing Bitcoin directly would be better than purchasing stocks for indirect Bitcoin exposure. Magazine: Can Off the Grid survive Steam’s crypto ban? Rage over Maplestory cheaters: Web3 Gamer

Source: CoinTelegraph