Metaplanet Completes $25.9 Million Bond Raise to Expand Bitcoin Holdings

Japanese firm Metaplanet Inc. has raised $25.9 million (¥4 billion) through the issuance of zero-interest, unsecured bonds, seeking to expand its Bitcoin (BTC) holdings.

The Tokyo-based firm confirmed receiving funds from EVO FUND, the bondholder, which will be primarily used to increase its Bitcoin reserve to 21,000 BTC by 2026 in ‘Asia’s Largest Ever’ raise.

Metaplanet said it is adjusting its previous financial plans to ensure that the raised funds go directly into increasing its Bitcoin reserves, to hedge against economic uncertainties in Japan, including high debt and yen depreciation.

“The Company has strategically shifted its financial management approach to adopt Bitcoin as its primary reserve asset,” as per the February 13 announcement.

The bonds are a type of debt instrument where Metaplanet has borrowed money from investors without having to pay interest, with the understanding that they will repay the principal amount later.

In this case, the bonds will be redeemed by August 2025, with the company using the funds to purchase Bitcoin.

Metaplanet’s Bitcoin pivot

Metaplanet made a “strategic pivot” and embarked on its Bitcoin buying spree in April 2024, following in the footsteps of U.S. software firm MicroStrategy (which has since rebranded as Strategy)

As of January, Metaplanet holds 1,761.98 BTC, valued at approximately $186 million (¥27.9 billion), and plans to grow this amount to 10,000 BTC by the end of 2025.

The company is reallocating funds, reducing its planned Bitcoin purchases from $723 million (¥111.3 billion) to $717 million (¥107.3 billion) through February 2027.

Metaplanet also intends to continue its Bitcoin income generation business, which is projected to run until December 2025.

This move comes after a highly successful year for Metaplanet, which has seen its market capitalization rise by 7,000% since adopting Bitcoin as a central part of its financial strategy.

The firm also reported an impressive 309.82% Bitcoin yield in Q4 of 2024, up 41.7% in the previous quarter.

Metaplanet Joins MSCI Japan Index

Metaplanet will soon join the Morgan Stanley Capital International Japan Index (MSCI), effective February 28, 2025, giving the company more exposure to institutional investors worldwide.

The MSCI Japan Index tracks large and mid-cap stocks in Japan, and many funds and ETFs that follow this index will now automatically include Metaplanet, potentially boosting demand for its stock.

“This milestone further solidifies Metaplanet’s position as Asia’s leading Bitcoin Treasury Company and expands our reach in global markets,” Simon Gerovich, CEO of Metaplanet, tweeted on Wednesday.

“Our inclusion reflects the significant progress we’ve made in expanding our market presence and executing our Bitcoin strategy,” Gerovich wrote.