Summay
- Metaplanet disclosed a 1 billion Yen loan to buy more Bitcoin.
- The Japanese company plans to boost its BTC reserves.
Metaplanet has just released an official announcement regarding a loan and Bitcoin purchase plans.
In the notes, the company states that at the Board of Directors meeting that was held today, the company resolved to secure a loan totaling 1 billion JPY with the entire amount to be allocated for purchasing Bitcoin.
The details of the lender and loan are revealed via the official notes as follows:
- The name of the lender: MMXX Ventures Limited
- Capital: $1 million
- Establishment date: February 10, 2022
According to the notes, the lender holds shares in Metaplanet.
Also, here are the official details regarding the loan:
- Loan amount: 1 billion Japanese Yen
- Interest rate: 0.1% per annum
- Execution date: August 8, 2024
- Loan term: 6 months from the execution date
- Repayment method: lump-sum repayment
- Collateral: none
Important notes in the official announcement include that if Metaplanet raises additional funds, the lender may demand an early repayment.
Also, Metaplanet says they chose this lender due to their background as shareholders who have supported the company, enabling rapid loan executions.
Future Outlook
The Japanese company also said that while the loan will incur interest, they expect its impact on their consolidated results for the fiscal year ending December 2024 to be minimal.
Metaplanet also says that they plan to allocate nearly the entire loan amount to buying Bitcoin. Also, Bitcoin holdings are exempt from end-of-term market value evaluation taxation due to long-term retention purposes, they will be recorded at cost.
Other holdings will be assessed quarterly at market value, with valuation gains or losses recorded in the non-operating income and expenses section of the income statement.
Metaplanet finished their note by saying that their basic policy is to hold Bitcoin in the long term, but if they use BTC for operations the applicable Bitcoin balance will be recorded as a current asset on the balance sheet.
At the moment Metaplanet holds 246 BTC, according to official data.
