Metaplanet and Emitaplanet are betting on Bitcoin... with debt 😳
The Japanese company Metaplanet announced that it will issue zero-coupon bonds, meaning they won't pay interest worth $10 million, and what's the goal of all this? To buy more Bitcoin 💰💥
So what's the story, and is what they're doing clever or reckless? 🤔
The advantage of what they're doing is that they see Bitcoin as a smart hedge against inflation and the decline of the Japanese yen. So instead of letting cash burn in the bank, they said let's borrow money and buy an asset to store.
But where's the risk? 👀
If Bitcoin drops significantly, they not only lose on the price but also have debts that need to be paid, meaning it's like entering a deal with leverage... but on a company-wide level 😬
This situation reminds us of the steps taken by MicroStrategy before when they also bought Bitcoin with debt and bet on the long term, and the result so far is that they're winning, but the pressure is always there with every downturn in the market 📉
🔁 Is this a bet or a smart financial plan? Honestly, both. This bet works if you have confidence that Bitcoin will continue to rise in the long term... but you must be prepared for any sudden shocks.
In short, Metaplanet has entered the big game... either you hit or lose everything.
Do you see it as a bold step or playing with fire? 🔥
