Japan-based Bitcoin Treasury company Metaplanet has announced an aggressive 165 billion JPY (yen) plan for its Bitcoin purchases.
The financing plan includes JPY 33.4 billion in bonds and JPY 131.78 billion through equity sales for the period 2026-2028.
As part of this first phase of the plan, the Ministry of Finance issued an 8 billion JPY (approximately $50 million) zero-interest bond to Evo Fund.
Because the debt will be repaid by April next year when it matures, the company wants said the total fund for Bitcoin [BTC] the purchases will be less than 165 billion JPY ($1 billion).
When all these stock acquisition rights are included, the company has a total financing capacity of JPY 157.204 billion for Bitcoin purchases.
That’s about $982 million in dry powder for additional BTC purchases. However, this depends on the stock recovery of BTC and Metaplanet and general market conditions. At current prices, that amount could buy approximately 13,000 BTC.
Is it enough to reach Metaplanet’s goal of 100,000 BTC?
For perspective, Metaplanet’s Target for 2026 is 100,000 BTC. It currently owns 40,117 BTC and over the past three quarters it has acquired an average of 5K BTC per quarter.
Assuming the buying pace continues for the rest of the year, it could add about 15,000 more BTC to its supply. That would bring his holdings to 55,000 BTC and still below the target of 100,000 BTC.
Meanwhile, based on current assets, Metaplanet is 60,000 BTC short of meeting its 2026 target. At current prices, that would amount to $4.6 billion in financing. Compared to the $1 billion capital plan, there is still a funding gap of +$3 billion.
Interestingly, the company has doubled its bonds (debt). His role model, Strategy, on the other hand, is now using his role model preferred shares, Stretch (STRC), to drive multi-billion dollar BTC purchases.
So why the difference? One reason for this may be the cost of capital. Strategy pays 11.5% interest to STRC holders. In contrast, Metaplanet enjoys zero interest on its bond issues.
Moreover, it is also a faster way to raise capital rather than waiting for better market conditions to sell shares.
In other words: Metaplanet has a faster and cheaper option to raise capital than an expensive issuance of preferred shares.
That said, Metaplanet’s move meant for analyst Peter Duan that “the flywheel is starting to turn again.” But whether the company can scale up its bond and stock sales plan to reach the 100,000 BTC target remains unclear.
Final summary
- Metaplanet plans to raise $50 million as part of its $1 billion capital plan to scale BTC holdings
- It has resorted to zero-interest bonds as a faster and cheaper way to raise capital for its BTC plan.