Tokyo-listed Bitcoin investment firm Metaplanet plans to secure a loan of ¥1 billion, equivalent to $6.8 million, to grow its Bitcoin holdings, according to an August 8 report. rack.
Earlier this week, the company announced plans to raise ¥10.08 billion (about $70 million) by issuing the eleventh series of stock purchase rights to all common shareholders. The offering includes one stock acquisition right per common share, with the option to purchase shares for ¥555 (~$4) between September 6 and October 15.
The company views these additional acquisitions as important components of its long-term strategy. There stood:
“Our basic policy is to hold Bitcoin for the long term; However, if we use Bitcoin for our operations, the applicable Bitcoin balance will be recorded as a current asset on the balance sheet.”
According to Google Finance factsthe news pushed the company’s shares up more than 20% to 893 yen at the time of writing.
This continues a positive trend observed since the company focused on Bitcoin. Shares of the Japan-based company have risen more than 450% since the start of the year.
Metaplanet loan
Metaplanet’s planned loan is set at an annual interest of 0.1% with a term of six months.
The company stated that the loan did not require any collateral. However, the lender, MMXX Ventures Limited, may require early repayment if Metaplanet wishes to raise additional funds. MMXX Ventures Limited is a shareholder in the company.
Metaplanet expects that interest costs will have a minimal impact on its finances.
Meanwhile, market observers noted that this move reflects the company’s continued bullish stance on Bitcoin despite recent market declines.
In recent months, Metaplanet has aggressively integrated Bitcoin into its treasury reserve while deploying various fundraising tactics to amass the flagship digital asset.
As of the last update, Metaplanet owns 246 Bitcoin, worth approximately $14 million based on current Bitcoin Treasuries facts.
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Liam ‘Akiba’ Wright
Liam, also known as ‘Akiba’, is a reporter, editor and podcast producer at CryptoSlate. He believes decentralized technology has the potential to bring about widespread positive change.