A Japanese public company, Metaplanet Inc.’s shares rose more than 9% on Monday after the company received permission to invest 1 billion yen ($6. 26 million) in Bitcoin via the proceeds of an upcoming bond offering.
Metaplanet announced on Monday its intention to use the second series of ordinary bonds totaling one billion yen, with a 0.5% annual interest rate, for further Bitcoin purchases, maturing on June 25, 2025.
Following the announcement that the bonds will mature on June 26, 2024, and all proceeds will be used to buy Bitcoin, Metaplanet’s stock surged by about 9% and traded 2% higher in the morning session according to Google Finance.
This action comes after the company recently invested in Bitcoin by purchasing it for around $1.6 million in early June. On June 11, the firm had about 141.07 BTC.
According to the data from bitcointreasuries.net, Metaplanet has been accumulating Bitcoins gradually, with a purchase made on April 23, May 10, and June 11.
It was in May when Metaplanet shared information about the decision to use Bitcoin as the strategic treasury reserve asset. This decision was attributed to economic factors that are currently affecting Japan such as high government debt, negative real interest rates which are long term, and a weak yen.
Metaplanet’s proactive approach reflects a growing trend among companies using Bitcoin to hedge risks amid economic uncertainty and fiat currency devaluation, underscoring their confidence in the cryptocurrency’s stability.
