Metaplanet Raises $208 Million in Zero-Interest Bonds to Buy 1,005 Bitcoins

Metaplanet, a publicly traded company on the Tokyo Stock Exchange, issued ¥30 billion (approximately $208 million) in zero-interest bonds on June 30, 2025. The funds were used to purchase 1,005 new Bitcoins, increasing the company's total holdings to 13,350 BTC, valued at over $1.4 billion at current prices. Metaplanet's ambitious plan, known as the “555 Million Plan,” aims to raise over $5.4 billion to acquire up to 210,000 BTC by 2027. If successful, Metaplanet would control roughly 1% of all Bitcoin that ever existed, making it the world’s second-largest corporate holder of Bitcoin.

CEO Simon Gerovich highlighted the company’s year-to-date yield from its Bitcoin strategy, which stands at 349%, and noted the enthusiastic response from investors. Supporters of Metaplanet argue that using 0% bonds provides the company with access to “free” capital without issuing new shares or incurring costly interest payments. However, critics warn that the company’s strategy is heavily dependent on Bitcoin’s price appreciation. They caution that a sharp downturn in the cryptocurrency market could result in enormous paper losses, declining investor confidence, and potential challenges in repaying bond obligations.

Metaplanet’s bond issuance was fully subscribed by a private institutional investor, EVO Fund, at 0% interest. This move underscores the growing institutional interest in Bitcoin-based strategies in Japan, where investors seek alternative stores of value due to ultra-low interest rates and a weakening currency. The company first used a portion of the $208 million to repurchase and cancel one of its previous bond series, worth ¥1.75 billion (about $12 million) with an interest rate of 0.36% per year. The remainder was used to buy 1,005 new BTC at an average price of $107,601 per coin, totaling about $108 million. Metaplanet now holds 13,350 BTC, surpassing well-known corporate holders like Tesla and Galaxy Digital.

Metaplanet’s holdings have quadrupled to 13,350 BTC from just 3,350 BTC three months ago. The company plans to more than double its current position within the next six months to about 30,000 BTC by the end of 2025. It aims to increase that number to 100,000 BTC by the end of 2026 and accumulate 210,000 BTC by 2027, which would represent 1% of all the Bitcoin that will ever exist. Metaplanet plans to raise $5.4 billion through bond issuance, private placements, and other capital market instruments under the “555 Million Plan” to fund this large-scale accumulation effort.

While zero-interest loans carry no interest, they are still debt obligations that must be repaid fully at maturity. Metaplanet has no recurring revenue stream from these holdings to help it repay its bond debt because Bitcoin is a non-productive asset and doesn’t yield income, pay dividends, or offer intrinsic returns unless sold. The company is essentially wagering that the value of Bitcoin will rise enough by the time the bonds mature to cover both the principal repayment and deliver substantial gains. If Bitcoin rises steadily over the next two years, Metaplanet can sell just a fraction of its holdings at a higher price, repay its zero-interest debt in full, and retain most of its position, possibly doubling or tripling the net asset value on its books.

However, if the price of Bitcoin stalls or falls significantly, Metaplanet will be holding debt that still needs to be paid while its core asset depreciates on its balance sheet. This scenario would undermine Metaplanet’s balance sheet and investor narrative because it would have to liquidate part of its holdings at a loss. The collapse of Archegos Capital, Terra-Luna’s death spiral, or even WeWork’s implosion under unsustainable growth promises are cautionary tales of a broader danger many companies have faced when borrowing heavily to invest in assets that do not generate income. Each case shows how aggressive financial engineering and optimistic growth projections masked deeper fragilities that only became visible when external conditions shifted. They also expose how quickly investor confidence can turn into panic when expectations aren’t met, especially when debt is involved.

Metaplanet’s capital strategy assumes that Bitcoin is a sound store of value and a high-growth asset that will appreciate enough to cover long-term debt commitments. The combination of a falling asset and a fixed debt repayment schedule that could cause a liquidity crunch or a sharp decline in investor trust poses a great danger to the company’s confidence in Bitcoin. Metaplanet could face serious challenges refinancing future obligations if capital markets tighten or institutional backers become less willing to underwrite zero-interest debt for crypto-heavy firms. Similarly, the company is in an increasingly fragile position where even small missteps could trigger scrutiny as it grows its Bitcoin holdings and debt obligations. The regulatory tone could shift quickly if financial regulators begin to question the prudence of allowing a listed firm to fund large, speculative bets with zero-cost leverage.

Confidence in Metaplanet’s Bitcoin strategy remains high, at least in the short term, as investors pushed the company’s stock price up by 10% almost immediately after it disclosed it had raised millions through zero-interest bonds and used a large portion of it to buy another 1,005 Bitcoin. Metaplanet is announcing ambitious goals, raising capital to buy more Bitcoin, and outlining a roadmap that could see it hold up to 210,000 BTC by 2027 in an environment where many companies remain cautious about digital assets. The company’s boldness attracted media attention and investor interest, especially among those who see Bitcoin as undervalued or believe it could one day replace fiat currencies as the world’s dominant store of value. However, Metaplanet’s gains are only real if Bitcoin’s price remains high. The company’s balance sheet could quickly take a hit, and the same investors who are currently cheering the strategy could just as easily retreat, pulling down the stock price in the process if the price of Bitcoin were to drop by 20% or 30% suddenly. Metaplanet’s stock has clearly done well, but the question is whether the current valuation reflects long-term value or short-term speculation. The market seems to be giving Metaplanet the benefit of the doubt.