Metaplanet Inc. Issues 5th Series of Ordinary Bonds to Accelerate Bitcoin Purchases; Repayment to be Made from Warrant Exercise Proceeds

Metaplanet Inc. has declared that it issued its 5th Series of Ordinary Bonds via private placement with EVO FUND for ¥5 billion to buy more Bitcoin.

Japanese cryptocurrency mining firm Metaplanet Inc. has announced that it issued its 5th Series of Ordinary Bonds via private placement with EVO FUND for ¥5 billion ($31.91 million) to purchase more Bitcoin (BTC).

In a filing disclosed on Dec. 20, Metaplanet Inc. announced the issuance of its 5th Series of Ordinary Bonds for raising approximately $31.91 million through EVO FUND. This news follows the company’s intent to issue up to ¥5 billion in ordinary bonds, as disclosed on Nov. 28, 2023.

The proceeds from this issuance will be allocated towards purchasing Bitcoin (BTC), as detailed in the company’s announcement on Nov. 28, 2023, concerning the issuance of the 12th Series Stock Acquisition Rights with an Exercise Price Adjustment Provision and the accompanying Stock Acquisition Rights Purchase Agreement.

The 5th Series Bonds carry no interest, and the principal will be repaid at a rate of 100 yen for every 100 yen of the bond amount. Each bond is valued at $1.59 million (¥250 million), and the full payment is due on Dec. 20, 2024. The bonds will mature on Jun. 16, 2025, but they may be redeemed early at the request of EVO FUND by providing written notice to Metaplanet Inc. The bonds can also be redeemed early when the proceeds from the exercise of the 12th Series Stock Acquisition Rights are multiple times integral multiples of the bond principal amount.

The bonds will not be guaranteed or collateralized and will only be made available to EVO FUND. No bond trustee will be appointed pursuant to Article 702 of the Companies Act and Article 169 of the Regulations for Enforcement of the Companies Act. Metaplanet Inc. will pay all principal and interest from its office in Roppongi, Minato-ku, Tokyo.

Finally, Metaplanet Inc. pointed out that the issuance will not have a material effect on the consolidated financial results of Metaplanet Inc. for the fiscal year ending Dec. 31, 2024. Nevertheless, the company promised to make timely disclosure of any material change or material impact on its financial outlook as a result of this deal.