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Japanese investment firm Metaplanet has secured a $6.8 million (1 billion Japanese yen) loan from one of its shareholders, MMXX Ventures, to purchase more Bitcoin. The loan has a 0.1% annual interest rate and a six-month term starting on August 8, 2024, with the principal to be repaid in a lump sum.
This announcement comes just two days after Metaplanet revealed plans to raise $70 million through a stock rights offering, with $58 million allocated for Bitcoin investments. The company aims to adopt various capital market instruments to bolster its Bitcoin reserves, similar to the strategy employed by MicroStrategy.
Metaplanet's CEO, Simon Gerovich, stated that the firm initially struggled with its balance sheet and debt repayment before realizing that Bitcoin could provide a better long-term position for the company. As of the latest purchase, Metaplanet has acquired a total of 246 Bitcoin worth $13.95 million at current market prices, with an average purchase price of $65,145.
Despite the recent 12.8% decline in the value of its Bitcoin holdings since the first purchase on April 23, 2024, Metaplanet's stock price has risen by 290% since announcing its Bitcoin plan on April 9. However, the stock has fallen from its year-high of $20.50 (3,000 Japanese yen) recorded on July 24, exacerbated by the cryptocurrency industry's "Black Monday" event on August 5, which saw Bitcoin drop 10% in a short two-hour window.
