Key Points
- Metaplanet, a Japanese firm, raises 2B Yen to purchase ‘cheap’ Bitcoin following a price dip.
- The company’s share value has significantly increased despite Bitcoin’s recent decline.
Metaplanet, often referred to as the Japanese MicroStrategy, has issued another convertible bond to raise 2B Yen (approximately $13.6 million). The goal is to seize the opportunity of buying Bitcoin at a discounted price as the cryptocurrency’s value dropped below $80K.
Capital Raise and Bitcoin Investment
Dylan LeClair, BTC Strategy Officer at Metaplanet, confirmed the company’s interest in the recent Bitcoin price drop, stating it was “time to buy the dip”. Simon Gerovich, CEO of Metaplanet, explained that the decision to issue bonds rather than sell shares was to preserve ‘shareholders’ value’.
By February 2025, Metaplanet had 2,235 Bitcoin holdings (valued over $180M), surpassing the 2K mark for the first time this year. The company adopted the Bitcoin strategy last summer, leveraging debt and selling shares to raise capital for Bitcoin purchases. This strategy resulted in a significant surge in the company’s share value, with a +1300% increase by mid-February.
Share Value and Bitcoin Price Fluctuations
Despite Bitcoin’s recent decline, Metaplanet’s share value was still up 930% from last summer. It experienced the smallest drop compared to MicroStrategy’s MSTR and Bitcoin this year. On a year-to-date basis, Metaplanet was down 4.8%, compared to MSTR’s -17% and Bitcoin’s -15%.
However, on a year-on-year basis, Metaplanet’s share value was up 1,640% relative to Bitcoin’s 28% and MSTR’s 150% gains. Thus, Bitcoin investors who sought indirect exposure through Metaplanet were better off than those who invested in MSTR.