Japan’s Metaplanet Increases Its Share Price Again by Buying More Bitcoin

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As a seasoned researcher with extensive experience in following the financial markets, particularly those in Japan and the technology sector, I find Metaplanet Inc.’s recent Bitcoin purchases intriguing. The company’s strategic moves into cryptocurrencies have been noteworthy, with its latest acquisition of 21.88 BTC worth over $1.2 million (200 million Japanese yen) bringing their total Bitcoin holdings to 225.6 BTC.

On July 16, I came across the news that Metaplanet Inc., a publicly listed company on the Tokyo Stock Exchange with the ticker symbol 3350, disclosed its latest Bitcoin purchase. The value of this acquisition amounted to approximately 21.88 Bitcoins, which is equivalent to over $1.2 million or 200 million Japanese yen.

Metaplanet Inc., based in Tokyo, Japan, is a versatile corporation that operates in various sectors, with a significant emphasis on technology and finance. The company’s shares are publicly available for purchase on the Tokyo Stock Exchange, identified by the ticker symbol 3350. Renowned for its innovative approaches and investments, Metaplanet explores new financial technologies, such as cryptocurrencies, to stay at the forefront of industry advancements.

Based on Metaplanet’s most recent declaration, their current Bitcoin assets amount to 225.6 Bitcoins, equivalent to around $14.6 million. This latest acquisition adheres to Metaplanet’s ongoing approach of profiting from Bitcoin’s price fluctuations. On July 7, they seized the opportunity during a price decline, purchasing 42.46 Bitcoins for approximately $2.5 million or 400 million yen.

Metaplanet’s stock price has experienced a significant boost in the past 24 hours. The price of Bitcoin rose by 2% during this timeframe, causing Metaplanet’s share price to jump by 9.68%, reaching $0.64 (102 yen) on the Tokyo Stock Exchange today. This uptick is an extension of a broader upward trend that began when the company disclosed its Bitcoin investment strategy on April 9, 2024. As a result, Metaplanet’s stock price has surged by an impressive 436%.

Metaplanet’s Bitcoin investments have seen significant price increases, yet their returns, calculated at 2.58% based on their average purchase cost of $62,890 per Bitcoin, remain relatively low.

On June 24, 2024, the Japanese company made public its decision, ratified by the Board of Directors, to issue a second series of guaranteed bonds worth ¥1 billion. These bonds will be assigned to EVO FUND. The purpose of this bond issuance is to amass funds for purchasing Bitcoin. Each bond is valued at ¥50 million and bears an annual interest rate of 0.5%. The payment for the Bitcoin purchase is scheduled for June 26, 2024, while the redemption date is set for June 25, 2025.

Metaplanet’s Representative Director and President, Simon Gerovich, personally guarantees the principal, interest, and any other obligations of these bonds under an agreement. As security for this debt, a first-priority mortgage has been placed on Hotel Royal Oak Gotanda, which is owned by Wen Tokyo Inc., a subsidiary of Metaplanet. No external bond administrator will be required due to specific regulatory conditions.

As a financial analyst, I would interpret Metaplanet’s statement as meaning that based on their current expectations, the upcoming bond issuance is not projected to materially influence the company’s overall financial results for the fiscal year concluding in December 2024. However, if any substantial impact arises, Metaplant will promptly communicate this information to the public.

In the year-to-date period, the company’s share price has gone up over 537%.

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2024-07-16 23:25