Publicly traded firm on the Tokyo Inventory Change, Metaplanet, issued ¥30 billion (roughly $208 million) in zero-interest bonds on June 30, 2025, to buy 1,005 new Bitcoins.
This elevated its whole holdings to 13,350 BTC (over $1.4 billion at present costs). The corporate additionally needs to boost over $5.4 billion to accumulate as much as 210,000 BTC by 2027 by way of its “555 Million Plan.” Metaplanet will management roughly 1% of all Bitcoin that ever existed and change into the world’s second-largest company holder of Bitcoin if it succeeds.
CEO Simon Gerovich stated the corporate’s year-to-date yield from its Bitcoin technique is already 349%, and traders have responded enthusiastically.
Metaplanet’s supporters stated utilizing 0% bonds offers the corporate entry to “free” capital with out issuing new shares or taking up pricey curiosity funds, however critics say the corporate’s strategy is simply too depending on Bitcoin’s worth going up. They warn the neighborhood that Metaplanet might face monumental paper losses, declining investor confidence, and potential challenges repaying its bond obligations if the cryptocurrency experiences a pointy downturn (because it has many instances earlier than).
Metaplanet points bonds to purchase extra Bitcoin
Metaplanet made headlines when it raised about ¥30 billion by way of zero-interest extraordinary bonds (about $208 million). The corporate can now entry a big pool of capital with none quick price, dilution of shareholder fairness, or long-term curiosity obligations as a result of they don’t must pay any curiosity over the lifetime of the bonds.
Non-public institutional investor, EVO Fund, subscribed to your complete bond providing at 0% curiosity, which confirmed rising institutional curiosity in Bitcoin-based methods in Japan, the place traders search various shops of worth attributable to ultra-low rates of interest and a weakening yen. It may be of venture that Metaplanet’s Bitcoin holdings will recognize over time, growing the corporate’s valuation and skill to repay the bond principal when it matures.
Metaplanet first allotted a portion of the $208 million to repurchase and cancel one in every of its earlier bond collection, price ¥1.75 billion (about $12 million) with an rate of interest of 0.36% per yr, earlier than shopping for new Bitcoin. It then used the rest of the proceeds to purchase 1,005 new BTC at a mean worth of $107,601 per coin, for a complete price of about $108 million. The corporate now holds 13,350 BTC and is forward of well-known company holders like Tesla and Galaxy Digital.
Metaplanet plans to carry 210,000 BTC
Metaplanet’s holdings have quadrupled to 13,350 BTC from simply 3,350 BTC three months in the past, and the corporate plans to greater than double its present place throughout the subsequent six months to about 30,000 BTC by the tip of 2025.
It goals to extend that quantity to 100,000 BTC by the tip of 2026 and accumulate 210,000 BTC by 2027 (1% of all of the Bitcoin that can ever exist). Metaplanet plans to boost $5.4 billion by way of bond issuance, non-public placements, and different capital market devices beneath the “555 Million Plan” to fund this large-scale accumulation effort.
Zero-interest bonds look sensible however carry threat
Zero-interest loans might carry no curiosity, however they’re nonetheless debt obligations that have to be repaid absolutely at maturity.
Metaplanet has no recurring income stream from these holdings to assist it repay its bond debt as a result of Bitcoin is a non-productive asset and doesn’t yield revenue, pay dividends, or supply intrinsic returns until offered. The corporate is basically wagering that the worth of Bitcoin will rise sufficient by the point the bonds mature to cowl each the principal reimbursement and ship substantial good points.
Metaplanet can promote only a fraction of its holdings at the next worth, repay its zero-interest debt in full, and retain most of its place, probably doubling or tripling the online asset worth on its books if Bitcoin rises steadily over the following two years.
Nevertheless, the corporate will probably be holding debt that also must be paid, whereas its core asset depreciates on its stability sheet if the worth of Bitcoin stalls or falls considerably. This state of affairs would undermine Metaplanet’s stability sheet and investor narrative as a result of it must liquidate a part of its holdings at a loss.
The collapse of Archegos Capital, Terra-Luna’s demise spiral, and even WeWork’s implosion beneath unsustainable progress guarantees are cautionary tales of a broader hazard many firms have confronted when borrowing closely to put money into property that don’t generate revenue.
Every case reveals how aggressive monetary engineering and optimistic progress projections masked deeper fragilities that solely turned seen when exterior circumstances shifted. Additionally they expose how rapidly investor confidence can flip into panic when expectations aren’t met, particularly when debt is concerned.
Metaplanet’s capital technique assumes that Bitcoin is a sound retailer of worth and a high-growth asset that can recognize sufficient to cowl long-term debt commitments. The mixture of a falling asset and a set debt reimbursement schedule that might trigger a liquidity crunch or a pointy decline in investor belief poses an important hazard to the corporate’s confidence in Bitcoin.
Metaplanet might face severe challenges refinancing future obligations if capital markets tighten or institutional backers change into much less prepared to underwrite zero-interest debt for crypto-heavy companies.
Equally, the corporate is in an more and more fragile place the place even small missteps might set off scrutiny because it grows its Bitcoin holdings and debt obligations. The regulatory tone might shift rapidly if Japan’s monetary regulators start to query the prudence of permitting a listed agency to fund massive, speculative bets with zero-cost leverage.
Buyers push up the inventory after Bitcoin purchase
Confidence in Metaplanet’s Bitcoin technique stays excessive, at the very least within the quick time period, as traders pushed the corporate’s inventory worth up by 10% virtually instantly after it disclosed it had raised tens of millions by way of zero-interest bonds and used a big portion of it to purchase one other 1,005 Bitcoin.
Metaplantet is saying bold objectives, elevating capital to purchase extra Bitcoin, and outlining a roadmap that might see it maintain as much as 210,000 BTC by 2027 in an surroundings the place many firms stay cautious about digital property. The corporate’s boldness attracted media consideration and investor curiosity, particularly amongst those that see Bitcoin as undervalued or imagine it might at some point exchange fiat currencies because the world’s dominant retailer of worth.
Nevertheless, Metaplanet’s good points are solely actual if Bitcoin’s worth stays excessive. The corporate’s stability sheet might rapidly take successful, and the identical traders who’re at present cheering the technique might simply as simply retreat, flattening the inventory worth within the course of if the worth of Bitcoin have been to drop by 20% or 30% abruptly.
Metaplanet’s inventory has clearly carried out properly, however the query is whether or not the present valuation displays long-term worth or short-term hypothesis. The market appears to be giving Metaplanet the good thing about the doubt.
