Metaplanet Doubles Down on Bitcoin with $13.3M Bond Issuance

A Bold Play in a Shifting Financial Landscape

Metaplanet’s latest bond issuance is another step in its calculated Bitcoin strategy. The company, once a struggling hotel business, has successfully repositioned itself as a Bitcoin treasury powerhouse since April 2024.

By issuing zero-coupon bonds – raising over ¥20 billion ($133 million) across nine rounds – it has built a significant BTC position through its Evo Fund. Its tenth issuance, approved by the board, matures on September 30, 2025, with an option for early repayment.

On March 24, Metaplanet reported holding 3,350 BTC, worth roughly $270 million. Its latest 150 BTC acquisition for $12.6 million aligns with Bitcoin’s recent 24% pullback from its January peak of $81,000.

CEO Simon Gerovich is eyeing a long-term stake, targeting 10,000 BTC by 2025 and 21,000 BTC by 2026 – a stash that would represent 1% of Bitcoin’s total supply and dwarf most corporate holdings outside the U.S.

Japan’s Economic Context Fuels the Fire

Metaplanet’s Bitcoin strategy is a direct response to Japan’s economic challenges. The yen has weakened 10% since early 2024, while the country’s debt-to-GDP ratio remains at a staggering 255%, according to the IMF. Inflation, though moderate, continues to erode cash reserves.

Bitcoin, as a decentralized hedge, offers an alternative to traditional financial systems.

This approach follows a trend set by U.S. firms like Strategy, which has accumulated 279,420 BTC using a similar debt-driven model. However, Metaplanet’s strategy is unique in Asia, where corporate Bitcoin adoption remains limited.

Its stock surged 1,900% over the past year, peaking at 72,000 yen in February before settling at 4,030 yen this week, closely tracking Bitcoin’s volatility.

The Mechanics: Bonds, Bitcoin, and Balance Sheets

Metaplanet’s playbook is simple: issue ¥2 billion in zero-interest bonds, swap the cash for Bitcoin, and let its holdings grow while keeping debt costs at zero. Investors like Evo Fund back the strategy, betting that Bitcoin’s value will climb.

To pay off those bonds, Metaplanet uses proceeds from moving strike warrants. The firm recently secured $55.2 million, trimming its debt to ¥3.75 billion while holding Bitcoin worth nearly 12 times that amount.

Analysts are debating the firm’s “BTC Rating,” a Strategy-inspired metric measuring Bitcoin holdings against debt. At 19.6x, it’s either a sign of financial strength or a risky gamble.

“If Bitcoin soars, they look brilliant,” says Tokyo-based analyst Hiroshi Tanaka. “If it crashes, they could be in trouble.”

Ripple Effects: From Tokyo to Global Markets

Metaplanet’s influence is growing beyond Japan. In the U.S., corporate Bitcoin adoption is accelerating following Trump’s March 7 Strategic Bitcoin Reserve proposal. In Europe, the MiCA framework is streamlining institutional entry.

Metaplanet has surpassed China’s Boyaa Interactive with 3,350 BTC, securing its position as the region’s largest corporate Bitcoin holder.

The company is expanding on multiple fronts. On March 21, it appointed Eric Trump as a strategic advisor, reinforcing its global outlook. Its Tokyo hotel is set to reopen as “The Bitcoin Hotel” in Q3 2025, integrating cryptocurrency into hospitality.

Shareholders holding 100+ shares by year-end will also benefit from a 30-million-yen Bitcoin reward pool.

Risks and Rewards in a Crypto-Charged 2025

Not everyone’s convinced; Bitcoin’s wild price swings could put Metaplanet’s balance sheet at risk, and Japan’s regulators are considering stricter crypto rules. But the upside? Huge! Standard Chartered sees Bitcoin hitting $125,000 by year-end, pushing Metaplanet’s holdings to a staggering $418 million.

One thing is clear – the distinction between traditional finance and cryptocurrency is blurring. Metaplanet’s latest bond move signals that Japan’s financial establishment is paying attention.