Tokyo-based investment and consulting firm Metaplanet Inc. announced plans to issue 1 billion yen ($6.26 million) worth of bonds to raise funds for purchasing Bitcoin. The company stated in a notice on Monday, June 24, that its board approved the move, specifying that the Bitcoin, currently trading at $62,306, would be held for the long term. A separate notice indicated that the bonds would offer an annual interest rate of 0.5%.
Metaplanet’s shares surged 11.5% on Monday, reaching 96 yen ($0.60), continuing an impressive year-to-date increase of over 500%, according to Google Finance.
Meanwhile, Bitcoin has reached a 40-day low, dropping 2.6% in the past 24 hours to $62,733 after nearly hitting $72,000 in early June, according to CoinGecko data.
If Metaplanet were to purchase 1 billion yen worth of Bitcoin today, they would acquire approximately 99.84 BTC.
The planned purchase would add to Metaplanet’s existing cryptocurrency holdings, which reached 141.07 BTC after the company announced on June 11 that it had acquired an additional 23.25 BTC.
Metaplanet initially bought 117 BTC in mid-May, adopting a “Bitcoin-first, Bitcoin-only approach” to its treasury as a response to ongoing economic pressures in Japan.
In its most recent holdings report from early June, Metaplanet stated that its average purchase price was 10.28 million yen, or $65,365, per Bitcoin. This means the company is currently facing a loss on its Bitcoin strategy.
Metaplanet’s aggressive Bitcoin acquisitions and subsequent share price surge have drawn comparisons to America’s MicroStrategy. The U.S. software company holds the record for the most Bitcoin owned by a public company, with 214,400 BTC valued at $13.4 billion, according to Bitbo data.