tl;dr
Japanese firm Metaplanet is issuing $15 million in zero-interest bonds maturing November 12 to buy Bitcoin, aiming to reach 10,000 BTC by the end of 2025. If fully raised, they could acquire about 147 BTC at current prices. This follows their recent purchase of 1,241 BTC worth $126.7 million, increa...
Japanese firm Metaplanet is taking a bold step by issuing $15 million in zero-interest bonds that mature on November 12, with the expressed goal of acquiring Bitcoin. This acquisition strategy aims to boost their holdings to an impressive target of 10,000 BTC by the end of 2025. If successful in raising the full amount, they could add approximately 147 BTC at current market prices. This follows their recent significant purchase of 1,241 BTC, valued at $126.7 million, raising their total Bitcoin holdings to 6,796 BTC.
The move by Metaplanet mirrors a larger trend emerging in 2025, where institutional investors and businesses are increasingly becoming the dominant buyers of Bitcoin, surpassing even governments and ETFs. Data highlights that businesses now lead Bitcoin accumulation, with MicroStrategy at the forefront, holding over 568,840 BTC. MicroStrategy’s acquisitions average a cost of $69,287 per coin, including a recent high-volume purchase of 13,390 BTC for $1.34 billion at an average of $99,856 per coin.
However, this aggressive accumulation strategy is not without its critics. Economist Peter Schiff warns of the risks associated with MicroStrategy’s leveraged purchases. He cautions that if Bitcoin prices decline below their average acquisition cost, the company could face substantial realized losses, especially since much of the buying involved borrowed funds. The volatility in Bitcoin's price heightens this concern, reflecting the inherent risks of leverage in crypto investments.
Recent market movements saw Bitcoin’s price climb to a high of $105,705 following a positive US-China 90-day tariff agreement but then dip by approximately 3.7% to around $101,725 at the time of reporting. Despite this fluctuation, many analysts remain optimistic, believing that ongoing institutional interest and adoption could propel Bitcoin to new all-time highs in the near future.
Overall, Metaplanet’s bond issuance symbolizes a strategic bet on Bitcoin’s growth potential amid an evolving landscape where institutions and businesses drive the market. Meanwhile, the caution voiced by experts highlights the delicate balance between opportunity and risk in the current Bitcoin investment environment.