$6.8M Loan for Buying Bitcoin: Is it A Good Idea for Metaplanet?
The post $6.8M Loan for Buying Bitcoin: Is it A Good Idea for Metaplanet? appeared on BitcoinEthereumNews.com.
Metaplanet Inc., a Japanese investment firm, has obtained a 1 billion yen ($6.8 million) loan to buy Bitcoin (BTC). The loan has an annual interest rate of 0.1%. This action shows that Metaplanet is serious about its long-term growth strategy involving acquisitions in Bitcoin. Metaplanet’s board of directors agreed to the loan due to their position of support for Bitcoin. The firm has planned to utilize a significant part of the loan to purchase Bitcoin. This decision is consistent with Metaplanet’s plan to improve its profitability and increase its corporate value in the future. The company stated that they plan on holding Bitcoin for the long term. The BTC could be employed for transactions. The appropriate Bitcoin balance will be reflected as a current asset within the financial statement. This approach shows that Metaplanet has a solid yet adaptable conviction in the future of Bitcoin. On Wednesday this week, Metaplanet said it would issue 10.08 billion yen ($68.4 million) Gratis Allotment of Stock Acquisition Rights. This provision enables shareholders to request and get new shares. Most of this money will also be used to buy more Bitcoins. This recent funding move comes after Metaplanet announced in May that it would switch to Bitcoin as its treasury reserve currency. This strategic shift was attributed to the economic downturn in Japan, government debts, and a depreciating yen. Since then, Metaplanet has bought a significant amount of Bitcoin, thus earning the status of ‘Japan’s MicroStrategy.’ Corporate Bitcoin Investment Gains Momentum MicroStrategy is an American company that is now the largest corporate buyer of Bitcoin, with a total of 226,500 BTC. Metaplanet’s aggressive buying of Bitcoin is similar to MicroStrategy’s big-ticket purchase. This comparison shows that Metaplanet has set its sights on becoming a key player in the corporate Bitcoin market. Metaplanet’s continued funding of Bitcoin…
Filed under: News - @ August 8, 2024 3:12 pm