Metaplanet Issues $15 Million Bonds to Buy Bitcoin

Japanese firm Metaplanet has announced a significant move in the cryptocurrency market by issuing $15 million in ordinary bonds. The proceeds from this bond issuance will be dedicated to acquiring Bitcoin (BTC), signaling the company's commitment to doubling down on its accumulation strategy despite recent price fluctuations.

The bonds, which carry a 0% interest rate, are set to mature on November 12 and are valued at $375,000. This strategic financial maneuver aims to push Metaplanet's Bitcoin holdings closer to its target of 10,000 Bitcoins by the end of 2025. If the firm successfully raises the full $15 million, it could acquire approximately 147 BTC at current prices. This move follows Metaplanet's recent acquisition of 1,241 Bitcoin, valued at $126.7 million, bringing its total holdings to 6,796 BTC.

Metaplanet's aggressive Bitcoin acquisition strategy aligns with a broader trend in the cryptocurrency market: a shift in Bitcoin ownership from individual investors to institutions and governments. According to data, businesses are now the leading buyers of Bitcoin, even outpacing governments and exchange-traded funds (ETFs). This trend is spearheaded by Strategy, which has acquired a significant amount of Bitcoin, increasing its total holdings to 568,840 BTC.

However, not everyone views this plan as sustainable. Economist and Bitcoin critic has cautioned against the potential fallout of such aggressive acquisitions. He warned that if Bitcoin’s price falls again, it could dip below Strategy’s average purchase price for their coins. Since Strategy borrowed money to fund these acquisitions, a price drop could be problematic. If forced to sell their holdings to repay debt, the losses would become “real” instead of just theoretical. This magnifies the risk of leveraging Bitcoin, especially when the market is volatile.

Despite these warnings, analysts remain optimistic that the current rally still has room to grow and could propel BTC to all-time highs. Metaplanet's bold move to issue bonds for Bitcoin acquisitions underscores the growing institutional interest in cryptocurrencies and the potential for significant returns in the long term. The company's strategy reflects a broader trend in the market, where businesses are increasingly viewing Bitcoin as a valuable asset for their portfolios.