Metaplanet's $26M Bitcoin Bet Amidst Japan's Economic Woes

Metaplanet Secures $26.1 Million to Boost Bitcoin Holdings

Japanese investment firm Metaplanet has raised 4 billion Japanese yen ($26.1 million) to bolster its Bitcoin holdings, marking another step in its aggressive shift towards cryptocurrency. The company announced the capital infusion through a post on its X account on Feb. 12, confirming that the funds were secured via zero-interest, unsecured, and unguaranteed bonds.

The raise aligns with Metaplanet’s ambitious plan to acquire 10,000 BTC by Q4 2025 and eventually expand its holdings to 21,000 BTC by the end of 2026. At current market prices, these targets would require an investment of approximately $957 million and $2 billion, respectively. With 1,762 BTC held as of Jan. 28, the company appears poised for an aggressive buying spree in the coming months.

The company’s strategic shift towards Bitcoin is not without reason. In its official statement, Metaplanet cited Japan’s challenging economic environment, characterized by high debt levels, persistent yen depreciation, and prolonged real negative interest rates. The move mirrors a broader trend among corporations, sovereign wealth funds, and even state governments that see Bitcoin as a hedge against inflation and currency debasement.

The EVO Fund, an investment management firm, backed the latest bond issuance. Notably, these bonds do not require Metaplanet to pay interest, making the raise an efficient way to increase its Bitcoin treasury without incurring additional debt-related costs.

In a financial adjustment, Metaplanet also reduced the amount of yen allocated for Bitcoin purchases from 111.3 billion yen ($723 million) to 107.3 billion yen ($701 million). While the decrease may seem minor, it signals a strategic recalibration as the company evaluates the optimal approach to expanding its BTC holdings.

Metaplanet’s pivot has yielded impressive results. Over the past 12 months:

Its stock price has surged by 5,250%, attracting heightened investor interest.

Shareholders have increased by 500%, with 50,000 new investors joining its ranks.