YEREVAN (CoinChapter.com) — Just two days after announcing plans to raise $70 million through a stock rights offering, Japanese investment firm Metaplanet has taken a 1 billion yen loan from one of its shareholders, MMXX Ventures. The company plans to use the funds to buy more Bitcoin.
Metaplanet Secures $6.8 Million Loan at 0.1% Interest for Bitcoin (BTC) Purchase
Metaplanet’s loan from MMXX Ventures amounts to approximately $6.8 million. The loan carries a 0.1% interest rate per annum and is set for a six-month term starting on August 8. The company stated that the loan will be repaid in a lump sum.
The details of the loan arrangement reveal that if all $6.8 million is used for Bitcoin (BTC) purchases, Metaplanet could acquire an additional 118.5 Bitcoin at current market prices.
Strategic BTC Shift and Recent Purchases
This loan is part of Metaplanet’s broader strategy to bolster its Bitcoin (BTC) reserves. On May 13, the company announced it would adopt various capital market instruments to increase its Bitcoin holdings. This strategy mirrors the approach taken by MicroStrategy, another major player in the Bitcoin investment space.
The firm initially turned to Bitcoin (BTC) to hedge against Japan’s worsening debt burden and the depreciating yen. Before adopting this strategy, Metaplanet was struggling to manage its debt and clean up its balance sheet. CEO Simon Gerovich highlighted these challenges at the Bitcoin 2024 conference in late July, stating that Bitcoin, as the “apex monetary asset,” could significantly improve the company’s long-term prospects.
Since April 23, Metaplanet has purchased 246 Bitcoin (BTC) across seven transactions, totaling $13.95 million. According to Bitcoin Treasuries data, the firm’s average purchase price is $65,145 per Bitcoin. Despite these efforts, the value of their Bitcoin holdings has decreased by 12.8% since their first investment.
Stock Surge Amid Bitcoin Volatility and Current Market Stats
Metaplanet’s stock price has seen significant fluctuations following its Bitcoin investment strategy announcement. Since April 9, the stock price has risen 290%, trading at 643 yen ($4.39). However, the stock reached a peak of 3,000 yen ($20.50) on July 24 before declining. This drop was exacerbated by the cryptocurrency market’s “Black Monday” on August 5, when Bitcoin’s (BTC) price fell by 10% within two hours.
At the moment of writing, the price of Bitcoin is $57,391.53, reflecting a 1.22% increase over the past day. The market capitalization stands at $1,132,741,646,379, with a 24-hour trading volume of $41,136,939,799, which has decreased by 12.27%. The circulating supply is 19,737,087 BTC out of a total supply of 21,000,000 BTC.
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