Metaplanet Shares Skyrocket After Bitcoin Purchase Announcement

An investment company plans to obtain a 1 billion yen loan, equivalent to $6.8 million, to bolster its Bitcoin holdings, according to an August 8 announcement.

Earlier this week, Metaplanet announced its intention to raise 10.08 billion yen (approximately $70 million) by issuing an 11th series of rights to all common shareholders.

This offering allows shareholders to purchase one stock acquisition right per common share, with an option to purchase shares at a price of 555 yen (approximately $4) between September 6 and October 15.

The company believes these acquisitions are critical to its long-term strategy.

They stated:

Our primary policy is to hold Bitcoin for the long term; however, if Bitcoin is used in operations, the applicable Bitcoin balance will be classified as a current asset on the balance sheet.

This news reportedly boosted the company’s share price by over 20%, reaching 893 yen at the time of writing.

This is a continuation of the upward trend seen since the company shifted its focus to Bitcoin, with its shares up more than 458.13% since the beginning of the year.

As for the loan, Metaplanet plans to borrow the funds at an annual interest rate of 0.1% for six months.