Japanese firm Metaplanet secures $6.8m loan to bolster Bitcoin holdings

Japanese investment firm Metaplanet has secured a 1 billion yen loan, all of which will be used to purchase Bitcoin (BTC).

Details shared in a post by Metaplanet on X on August 8 show that the lender is MMXX Ventures, which owns shares in Metaplanet. The loan term will run for six months starting on August 8 and will carry an annual interest rate of 0.1%.

The company, which is listed on the Tokyo Stock Exchange, is expected to repay the unsecured loan in a lump sum after the loan maturity date.

If Metaplanet were to purchase Bitcoin (BTC) right now, the loan amount would be equivalent to approximately 119 BTC, equivalent to $6.8 million at current exchange rates, and the current price of one BTC is $57,170.

Metaplanet’s announcement comes just days after the investment firm announced that it plans to raise $70 million through equity rights offerings, with more than 80 percent of that amount earmarked to purchase Bitcoin.

The loan and equity offerings are part of Metaplanet’s plan to grow its cryptocurrency holdings, which are reported to be worth 246 BTC, worth just over $14 million. The company is attempting to protect its long-term growth by capitalizing on Bitcoin’s potential long-term appreciation, with some analysts predicting the crypto could reach as much as $1 million in the next decade.

The move is very similar to what MicroStrategy has been doing for the past few years. The US company currently owns over 79,000 BTC worth around $4.5 billion. MicroStrategy CEO Michael Saylor revealed on August 7 that he personally owns over $1 billion worth of Bitcoin, meaning he could hold up to 20,000 BTC in his treasury.

BREAKING: Michael Saylor says he’s personally worth more than $1 billion #Bitcoin.

— Observer.Guru (@GözcüGuru) August 7, 2024

Meanwhile, Bitcoin’s price has slightly increased over the past 24 hours. At press time, it showed a 0.7% improvement from the previous day, and its 24-hour trading volume reached $43.5 billion, making it the second most traded digital asset after Tether (USDT).