According to Cointelegraph, Japanese investment firm Metaplanet is actively pursuing an increase in its Bitcoin exposure by raising $50 million through a private placement of zero-interest bonds. Announced on May 28, these bonds are issued in denominations of $1.25 million and do not offer regular interest payments. Instead, any potential profit for investors is anticipated to come from the bond's redemption value. Evo Fund, an investment firm based in the Cayman Islands, will be the sole bondholder. Evo Fund has been a consistent supporter of Metaplanet's Bitcoin acquisition strategy, participating in multiple rounds of zero-interest bonds to provide capital for Metaplanet's Bitcoin purchases.
Metaplanet's bonds are unsecured and unguaranteed, lacking both a bond administrator and collateral, which indicates a significant level of trust between Metaplanet and Evo Fund. This move also underscores confidence in Bitcoin's long-term potential as Metaplanet continues to expand its holdings. The company has stated that the bond issuance is expected to have minimal impact on its financial results for 2025, though it will provide updates if necessary. This strategy reflects a broader trend among companies seeking alternatives to traditional fiat-based treasury strategies.
Metaplanet's recent activities include its second-largest Bitcoin purchase, acquiring 1,004 Bitcoin valued at over $100 million, which increased its total Bitcoin holdings to 7,800 BTC, worth over $800 million. According to BitcoinTreasuries.NET, Metaplanet's Bitcoin investments have appreciated by nearly 20%. This aggressive Bitcoin strategy has also positively impacted Metaplanet's stock prices. On May 27, 10x Research reported that Metaplanet's stock is trading as if Bitcoin were valued at five times its actual price, suggesting that investors might be overpaying for their Bitcoin exposure through the company.
The rising stock prices of companies with significant Bitcoin holdings have attracted criticism from notable investors like Jim Chanos. Speaking at the Sohn Investment Conference in New York, Chanos revealed that he is selling MicroStrategy stock to purchase Bitcoin directly. His decision is based on the belief that investors are overpaying for Bitcoin exposure through corporate entities like MicroStrategy, and that direct Bitcoin purchases would be more advantageous. This perspective highlights the ongoing debate over the best methods for gaining Bitcoin exposure in the investment community.
