• Metaplanet said it negotiated a $6.8 million loan “with the entire amount allocated for purchasing bitcoin.”
• As of the start of July, Metaplanet held a total of 161.3 BTC ($9.2 million).
• The company’s strategy mimics that of software developer MicroStrategy (MSTR), which has been acquiring bitcoin for over four years and holds in excess of 226,000 BTC.
Japanese investment adviser Metaplanet recently arranged a loan to purchase more Bitcoin, continuing its strategy of adopting the cryptocurrency as a reserve asset.
Metaplanet Secures Loan for Bitcoin Purchase
Metaplanet arranged a 1 billion yen ($6.8 million) loan from shareholder MMXX Ventures, with the full amount allocated for buying bitcoin. The Tokyo-based company borrowed the money for six months at a 0.1% annual interest rate.
Adopting Bitcoin as a Reserve Asset
In May, Metaplanet announced it would use Bitcoin as a reserve asset to hedge against yen volatility. By early July, it held 161.3 BTC worth $9.2 million. Metaplanet’s strategy copies software developer MicroStrategy, which has acquired bitcoin for over four years and holds more than 226,000 BTC.
Share Price Rises Amid Economic Recovery
Metaplanet’s share price closed 20% higher on Thursday as Japanese stocks rebounded from the previous week’s sell-off after the Bank of Japan hiked interest rates.
Conclusion
Metaplanet continues to buy Bitcoin despite recent stock market volatility, sticking to its strategy of adopting the cryptocurrency as a reserve asset. The company has borrowed millions of dollars specifically for acquiring more bitcoin.
