Metaplanet, a publicly traded Japanese investment company, has unveiled its strategic plan to expand its Bitcoin holdings by securing a substantial 1 billion yen ($6.8 million) loan from one of its investors.

This bold move follows the company’s previous investment of 1 billion yen into Bitcoin in July as part of its overarching Bitcoin investment strategy.

The decision to obtain a loan amidst the current market conditions, where Bitcoin has experienced a notable downtrend and the price of the digital asset has dropped below $60,000, underscores Metaplanet’s unwavering confidence in the future outlook of the cryptocurrency.

This move not only instills hope across the market but also serves as an inspiration for other investors to capitalise on the current market dip.

In a statement released on August 8, Metaplanet disclosed its resolution to secure a 1 billion yen loan. This decision came after a key Board of Directors meeting, and the loan is set to be obtained from MMXX Ventures, a British Virgin Island-based investment company.

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The terms of the loan include an interest rate of 0.1% per annum and a term of 6 months from the execution date, August 8. It is notable that Metaplanet has committed to repaying the loan in a lump sum, emphasising the company’s financial wisdom.

Furthermore, the selection of MMXX Ventures as the lender was underpinned by its strong support for the company and its ability to facilitate prompt loan execution.

The funds secured through this loan will be directed towards further enriching Metaplanet’s Bitcoin portfolio. Additionally, the company recently unveiled its plans to distribute 10.08 billion yen (approximately $69.5 million) worth of stock acquisition rights at no cost, with the resulting proceeds intended for additional Bitcoin acquisitions.

Reaffirming its steadfast confidence in the long-term value of Bitcoin, Metaplanet reiterated its policy to hold Bitcoin long-term, highlighting its commitment to embracing Bitcoin as a fundamental aspect of its investment strategy.

At the same time, the company clarified that any utilisation of Bitcoin for operational purposes will be effectively recorded as a current asset on the balance sheet.

This strategic development materialised within a brief span of 48 hours after the company communicated its intentions to raise about $70 million through issuing stock rights, with a significant portion of this capital earmarked for further Bitcoin acquisitions.

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Often likened to the microstrategy of Japan, Metaplanet’s decision to venture into Bitcoin was initially born out of a need to insulate itself against the devaluation of the Japanese yen.

CEO Simon Gerovich expounded on the company’s pivot to Bitcoin as a strategy to improve its future earnings during a recent Bitcoin Conference.

According to data from Bitcoin Treasuries, between April 23 and July 22, 2024, Metaplanet held 246 Bitcoin, valued at approximately $14 million.

Remarkably, in line with its Bitcoin strategy, the company’s stock price has experienced a meteoric rise of about 290% since it unveiled its Bitcoin plan in April.

This amazing growth serves as a testament to the company’s strategic foresight and underscores its position as an influential player in the evolving landscape of digital assets.