Zero-interest bonds worth 8 billion Japanese yen ($50 million) were issued by Tokyo-listed Metaplanet to EVO FUND. The money would be used to buy more Bitcoin, as stated in a filing on Thursday.
The filing states that Metaplanet will have access to zero-interest financing while it builds one of the biggest corporate Bitcoin treasuries in the market via the 20th series of ordinary bonds, with maturity in April 2027 and are unsecured.
At its heart, Evolution Financial Group’s Cayman-based EVO FUND is an expert in structured financings for businesses with a concentration on digital assets; it is also the primary subscriber to Metaplanet’s zero-interest bonds, which are used to finance the acquisition of Bitcoin.
Although EVO FUND has the option to seek early redemption with five working days’ notice, the bonds will be repaid at par at maturity, as per the conditions of the contract. Metaplanet has the option to redeem the bonds in whole or in part if it secures further funding from the same investor.
Banking on Bitcoin
Rather than depending just on operational cash flow, Metaplanet is increasingly relying on its Bitcoin treasury model, which it has utilized repeatedly to finance itself. The most recent fundraising is an extension of this approach.
Metaplanet increased its holdings to over 40,177 BTC and solidified its position as the third-largest publicly listed Bitcoin holder with an aggressive first quarter acquisition of 5,075 BTC, which led to the current rise.
The company’s growth has made it stand out in Asia as an example of a public organization that has used debt and equity funding to amass Bitcoin as a strategic asset, evoking analogies to MicroStrategy’s balance sheet approach in the US. In spite of the recent volatility in the cryptocurrency markets—Metaplanet has signaled its intention to continue purchasing with the fresh issue.