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Metaplanet Raises $210 Million in Bitcoin Debt
Metaplanet’s total Bitcoin holdings reach 10,000 BTC
Metaplanet’s stock price soars, are Japanese investors going crazy for Bitcoin-related stocks?
Regarded as Japan’s MicroStrategy, the publicly listed company Metaplanet announced today the issuance of $210 million in its 18th series of zero-interest corporate bonds, specifically aimed at raising funds for EVO FUND, clearly stating that the capital will be used to purchase Bitcoin. This move indicates that Metaplanet is actively adopting a MicroStrategy-like “Bitcoin capital strategy,” leveraging debt to expand its Bitcoin holdings, reflecting the company’s long-term optimism and strategic allocation towards Bitcoin.
EVO FUND is an investment fund managed by Evolution Capital Management LLC, headquartered in the United States, while EVO FUND is registered in the Cayman Islands. The fund primarily conducts investment activities in the Japanese market through its subsidiary, Evolution Japan Securities Co., Ltd. To promote its Bitcoin reserve strategy, the Japanese listed company Metaplanet has repeatedly issued zero-interest corporate bonds to EVO FUND.
However, since EVO FUND typically invests in companies with poor financial conditions, and the investment terms may lead to the dilution of existing shareholders’ equity, some observers view it as a “vulture fund,” believing its strategy may be detrimental to the existing shareholders of the target companies.
Meanwhile, the company also announced today at noon that it had increased its holdings by 1,112 BTC, bringing its total holdings to 10,000 BTC, with an average price of $96,591.28.
Following the announcement, Metaplanet’s stock price quickly surged over 20%, with a market capitalization reaching 1.1 trillion yen, which is eight times the value of its Bitcoin holdings.
According to AB Kuai.Dong, an increasing number of retail investors in Japan are choosing to “indirectly hold Bitcoin” by purchasing shares of publicly listed companies like Metaplanet that hold large amounts of Bitcoin, rather than buying Bitcoin directly.
This investment choice is driven by two key reasons: a tax system difference and the limitations of the NISA (Nippon Individual Savings Account) system. According to current regulations, Bitcoin is defined as a “property commodity” by the Japanese Financial Services Agency and is not classified as a financial product, thus it cannot be included in the NISA program. This means that if you buy Bitcoin directly and make a profit, you may face a tax burden of up to 20% to 55%. However, if you opt to buy shares of a publicly listed company that holds Bitcoin, and your annual investment amount does not exceed 2.4 million yen, you can fully exempt capital gains and dividend taxes through NISA.
For example, if a retail investor in Japan wants to invest 100,000 yuan to buy Bitcoin, the after-tax amount may only be 70% if purchased directly. However, by purchasing stocks through a NISA account, they can retain all earnings. Therefore, Metaplanet is regarded as a representative of the “Japanese version of MicroStrategy,” becoming a hot topic in the Japanese market. This approach is not only legal and low-tax but also more friendly to traditional investors, making “buying Bitcoin through stocks” a new trend in Japan.