Metaplanet issues $50M in zero-interest bonds to boost Bitcoin holdings

Japanese investment company Metaplanet is raising $50 million through a private placement of zero-interest bonds as part of its strategy to increase its Bitcoin exposure.

In a May 28 announcement, the company said it was raising $50 million through bonds. The bonds are issued in $1.25 million denominations and carry no interest. Investors will not receive regular payments, with any potential profit expected to come from the bonds’ redemption value.

Evo Fund, a Cayman Islands-based investment firm, will be the sole bondholder. The investment company has been Metaplanet’s primary backer for its Bitcoin acquisition strategy, subscribing to multiple rounds of Metaplanet’s zero-interest bonds, providing capital for its Bitcoin (BTC) buys.

The bonds are unsecured and not guaranteed, with neither a bond administrator nor collateral. This reflects the high degree of trust between the two companies. It also shows confidence in BTC’s long-term outlook as Metaplanet continues to increase its holdings.

Excerpt of Metaplanet’s announcement to issue zero-interest bonds to buy Bitcoin. Source: Metaplanet

Metaplanet expects minimal impact on 2025 results

Metaplanet said it expects the issuance to have minimal impact on its 2025 financial results, though it will disclose further developments if needed.

Metaplanet’s push into Bitcoin highlights a growing trend among companies seeking alternatives to fiat-based treasury strategies.

The move follows Metaplanet’s second-biggest BTC purchase, scooping up 1,004 Bitcoin worth over $100 million. This pushed the company’s Bitcoin holdings to 7,800 BTC, worth over $800 million. According to BitcoinTreasuries.NET, Metaplanet is up by nearly 20% on its Bitcoin investments.

Metaplanet’s Bitcoin strategy has also given its stock price a boost. On May 27, 10x Research reported that Metaplanet’s stock trades as if its Bitcoin were worth five times its actual price. The research company said investors in the company are “dramatically overpaying for their Bitcoin exposure.”

Related: Bitcoin treasury pivot lifts luxury watchmaker’s stock more than 60%

Bitcoin Treasury strategy attracts criticism

With the rise of Bitcoin treasury companies’ stock prices, getting Bitcoin exposure through corporate wrappers has attracted criticism from well-known investor Jim Chanos.

At the Sohn Investment Conference in New York, Chanos said he’s selling Strategy stock to buy Bitcoin. Chanos’ move assumes investors are overpaying for BTC exposure through Strategy and others that follow the blueprint.

The investor’s move assumes that purchasing Bitcoin directly would be more profitable than purchasing stocks for indirect Bitcoin exposure.