Metaplanet Inc. has today issued $50 million worth of zero-interest convertible bonds, this being the 16th time such bonds have been used strictly to fund additional Bitcoin. Its share price was higher by 9.5% on the news, since investors responded to the company’s strategy to accumulate Bitcoin.
Bond Issuance Fuels Bitcoin Treasury Growth
Since the bonds don’t earn interest and eventually can be converted to equity on the terms defined, Metaplanet is able to attract new capital without quickly harming shareholders’ positions. The company plans to use the proceeds from this round to purchase additional Bitcoin, aiming to acquire 10,000 BTC by 2025.
Metaplanet Currently Holds Over 7,800 BTC
Zero-interest loans are now a popular way for crypto companies to access cheap borrowing. Thanks to these kinds of debt instruments, the company can increase its holdings of digital assets without losing liquidity for various business uses.
Investor Confidence Is Revealed by Share Price Response
The shares of the company rose 9.5% after the company made its bond announcement, ending the session higher. The encouraging reaction from the market shows that investors want to see companies building substantial Bitcoin holdings and being honest about how they did it.Â
According to analysts, Metaplanet’s consistent approach with repeat bond offerings supplies a stable structure for building a Bitcoin holding that matters to retail and big investors.
This Addition Reflects the Company’s Ongoing Approach
This recent bond launch is after Metaplanet acquired 1,004 BTC for around $104.3 million last May 19, when each coin was bought at $103,873 on average. So, the latest purchase raised the total Bitcoins owned by the company to 7,800 BTC, worth more than $712 million at current prices. Thanks to this approach, Metaplanet spreads its purchases over time, stabilizing the portfolio and confirming its resolution to hold Bitcoin as a store of value.
Going Beyond the 10,000 BTC
The use of bond proceeds for further purchases means Metaplanet is still on track to get 10,000 BTC within the next seven months. In addition to hoarding digital assets, the company has shown full transparency by reporting the treasury regularly and conducting audits.
Revealing so much information about its acquisitions helps Metaplanet build a reputation among fans of Bitcoin. By relying on zero-interest debt to buy Bitcoin, Metaplanet presents an effective method for how companies should manage corporate treasuries now and in the future.
