Japanese firm Metaplanet Inc secures $6.8 million Loan to purchase more Bitcoin

Japanese investment firm Metaplanet Inc. announced in a statement released Thursday that it has secured a $6.8 million loan to purchase additional Bitcoin (BTC).

According to the notice by the company regarding loans and Bitcoin purchases, MetaPlanet said that its board of directors decided to acquire a loan for a total of 1 billion yen (approximately $6.8 million) with an annual interest rate of 0.1%.

The firm in the statement said, "We anticipate that the interest paid on the loan will have little effect on Metaplanet consolidated results for the fiscal year that ends in December 2024." Almost the whole loan amount is what we intend to use to buy Bitcoin. We will record at cost Bitcoin holdings exempt from end-of-term market value evaluation taxation due to long-term retention purposes, the post added. Other holdings will be evaluated on a quarterly basis at market value, and any valuation gains or losses will be recorded in the expenses section of the income statement and the non-operating income.

Explaining the company's basic principle on holding Bitcoin long-term, it stated that in the event that the firm uses BTC for operations, the applicable balance will be shown on the balance sheet as a current asset.

The announcement on Thursday followed the company's Tuesday announcement that it plans to raise 10 billion yen (worth approximately $69.13 million) and invest the majority of the fund $58.76 million in Bitcoin (BTC). This was stated in the notice by the company regarding the gratis allotment of its 11th series of stock acquisition rights to existing shareholders.

Metaplanet currently holds approximately 246 Bitcoins worth $13.4 million. As part of its long-term growth strategy, the company is hoping to raise $70 million to significantly expand its Bitcoin treasury. This action is consistent with the approach that the Nasdaq-listed business intelligence firm MicroStrategy pioneered. By debt financing and share sales, Michael Saylor MicroStrategy has accumulated over 220,000 Bitcoins, which are currently valued at billions, since 2020.

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