- Institutional investors continue acquiring digital assets despite market uncertainty, with Metaplanet leading the charge through innovative financial strategies
- Metaplanet uses Stock Acquisition Rights and zero-coupon bonds to fund its growing Bitcoin reserves, ensuring a steady accumulation process
- The company’s Bitcoin holdings now rank eleventh among publicly traded firms, with recent leadership appointments signaling ambitious plans for crypto adoption
While retail investors faced difficult times amidst the potential end of the 2024-2025 bullish market, institutional investors have apparently kept their foot on the gas pedal, repeatedly acquiring more digital assets.
Metaplanet, the Tokyo-based company that operates as Japan’s first publicly listed Bitcoin Treasury Company, continued to expand its Bitcoin reserves amidst the market uncertainty, recurringly buying more BTC at almost a weekly rate.
Just today, Metaplanet announced the purchase of an additional 150 BTC at the cost of 1.886 billion Yen. This acquisition catapulted the company’s Bitcoin holdings to 3,350 — the eleventh largest Bitcoin treasuries among publicly traded companies.
Funding the 11th Largest Bitcoin Treasury: Metaplanet’s Strategy
To fund its rapidly expanding Bitcoin reserves, Metaplanet uses a mix of fund-raising financial strategies. The Asian firm raises funds through “Stock Acquisition Rights” (SARs), and “Zero-Coupon Bonds”.
SARs allow investors to buy Metaplanet shares at a predetermined fixed price. When these rights are exercised, Metaplanet receives the funds from the share purchases, which it then uses to buy Bitcoin.
Meanwhile, zero-coupon bonds are a type of loan that does not require Metaplanet to pay regular interest. Instead, the company may agree to pay the full amount by a specific date.
The strategy revolves around using the SARs funds to pay off these bonds regularly, keeping the fund-raising cycle running smoothly.
This clever system ensures a consistent influx of funds for Bitcoin accumulation, establishing Metaplanet as a leader in institutional crypto adoption. Recently, the company also appointed Eric Trump to its Strategic Advisory Board, signaling its intent to leverage high-profile leadership for its Bitcoin-focused mission.
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