Metaplanet’s Bold Bet: Issuing Bonds to Buy More Bitcoin

Metaplanet, the public Japanese firm that has been heavily investing in BTC since April.

Late Sunday, Metaplanet announced plans to issue another 1 billion yen ($6.2 million) in ordinary bonds to purchase more Bitcoin. At current prices, this would add approximately 101 additional BTC to its balance sheet, supplementing its existing total of 141.07 BTC.

“Japan has the highest debt-to-GDP ratio in the world. Ongoing financial repression is the result,” wrote Dylan LeClair, Metaplanet’s Director of Bitcoin Strategy, on Twitter. “Metaplanet’s aim is to provide Japanese and international investors alike exposure to Bitcoin supercharged by Japanese capital markets.”

By the end of trading on Monday, Metaplanet’s stock on the Tokyo Stock Exchange surged 9.2% to 95 JPY per share, reflecting a 400% increase from its trading price on April 8, the day before the company declared Bitcoin as its new “core treasury reserve asset.”

Previously focused on real estate and Web3 investments, Metaplanet’s latest Bitcoin strategy is straightforward: issue debt and shares to buy more Bitcoin, banking on its long-term value appreciation.

The new bonds come with an annual interest rate of 0.5%, significantly lower than Bitcoin’s compound annual growth rate of 59% over the past decade. The bonds will mature in June 2025, with a lock-in period of three months post-purchase.

Metaplanet expressed its intention to emulate MicroStrategy—the largest corporate Bitcoin holder—by continuously buying Bitcoin despite short-term price fluctuations, citing Bitcoin’s absolute scarcity as a stark contrast to inflationary political currencies.

Bitcoin is currently down 12% this month amid what analysts describe as a lack of new investor demand and bull market interest. Large holders and miners have been selling off their assets, while the German government is offloading its seized Bitcoin, and the Mt. Gox bankruptcy estate is set to release $9 billion worth of long-dormant BTC back into the market next month.