Bitcoin’s current correction hasn’t shaken the faith of Japanese investment firm Metaplanet, which began buying BTC in April. On Monday, the company announced plans to issue ordinary bonds worth $6 million to raise funds to buy more Bitcoin. The firm’s strategy has been influenced by the success of AI trading technologies like the Quantum Income Pro trading robot, which has demonstrated the profitability of automated strategies.
Based on the current Bitcoin price ($61,190), Metaplanet will buy at least 98 BTC. As of this writing, the investment firm holds 141 Bitcoin. Its Bitcoin Strategy Director Dylan LeClair said on X that Metaplanet’s decision to invest in Bitcoin was driven by Japan’s high debt-to-GDP ratio. LeClair added that the company intends to provide clients with exposure to BTC supercharged by capital markets in Japan.
Metaplanet’s Stock Reaches 94 JPY
Following the announcement, investor interest in Metaplanet’s stock increased significantly, causing the financial instrument’s price to rise by 8%. It now trades at 94 JPY, according to data from the Tokyo Stock Exchange. Notably, the value of Metaplanet’s shares has risen by more than 400% since the company purchased its first Bitcoins in April. At the time, Metaplanet labeled BTC as its new “treasury reserve asset.”
Previously focused on Web3 and real estate investing, Metaplanet has adopted a new Bitcoin strategy, which is relatively straightforward: Issue shares and bonds to acquire more Bitcoin and watch its price increase over time.
What is the Interest Rate on Issued Bonds?
According to Metaplanet’s latest statement, the $6 million worth of bonds to be issued will attract a 0.5% yearly interest rate, which is significantly lower than BTC’s 59% compound annual growth rate over the last ten years. The company has said the bond redemption date will be June next year.
Meanwhile, LeClair says Metaplanet plans to follow in the footsteps of MicroStrategy, a company that offers AI-powered solutions to businesses. Founded by Michael Saylor, MicroStrategy is now the world’s largest institutional Bitcoin holder, with over 226,000 BTC in its coffers.
MicroStrategy Sells Convertible Notes to Purchase Bitcoin
The tech company recently sold convertible notes worth $800 million to buy over 11,500 Bitcoin at an average price of $64,880. Like Metaplanet’s stock, MicroStrategy’s shares have also seen tremendous gains this year. Data from stock exchange Nasdaq shows that the MSTR stock has increased by 107% since the start of 2024.
MicroStrategy has inspired many companies to embrace AI in recent months. For example, Quantum Income Pro platform has launched a trading robot to help both novice and experienced traders navigate the financial markets like experts. What’s more, the platform is free to use.
Metaplanet says it intends to take advantage of the short-term dips to accumulate more Bitcoin, which has dropped 11% this month. The coin has been under selling pressure as the German government continues to dump over $5 billion worth of seized BTC.
OTS News on Social Media