$3350 (-14,4 %) risky gamble, or are you in?
The Japanese company Metaplanet can't seem to stop buying Bitcoin (BTC). Now it's at it again after a bold financial move: issuing $24.8 million worth of bonds. The proceeds are entirely earmarked for expanding their already impressive BTC holdings. But there is one caveat.
Metaplanet is banking on investor confidence
The bonds, which carry no interest, were purchased in full by the EVO FUND investment fund and will mature on October 31, 2025. They will be repaid at the original amount, without interest or additional compensation, unless the investor requests early repayment. It is striking that the repayment does not come from regular cash flow, but is financed by capital that the company hopes to raise through the exercise of share rights.
However, there are some risks. Metaplanet relies heavily on the confidence that investors will want to and will continue to invest in its shares. However, if the company's share price falls, it may become more difficult to raise sufficient capital through the exercise of these share rights. Investors may then want to pay less or decide to exit.
For the time being, however, the market seems to be taking the news positively. The Japanese company's shares jumped 8.63% on the last trading day to close at 428 yen. Investors thus seem to continue to have confidence in the company's bold BTC strategy and clearly see it as a promising long-term vision.
The road to 10,000 BTC
With the $24.8 million raised, Metaplanet is estimated to be able to buy over 256 Bitcoin, based on a price of $96,600 per BTC. Last month, the company already reached the impressive milestone of 5,000 BTC in its possession. With these new purchases, Metaplanet is heading towards its ambitious goal of doubling this holding to 10,000 BTC by the end of 2025.
