Metaplanet Inc., a Japanese investment firm, announced on Monday that its board of directors decided to purchase Bitcoin worth about $6.26 million (1 billion Yen) using capital raised through a round of bond issuance.

This announcement caused a sharp spike of 12% in the price of Metaplanets stock, indicating community approvals of these purchases.

More Bitcoin Buys for Metaplanet

In a press statement released on June 24, the Tokyo Stock Exchange-listed Investment company mentioned that their board has resolved to purchase more Bitcoin. As per the statement, Metaplanet will make the additional investment by issuing series two ordinary bonds with guarantees.

In a separate statement, the company, also known as the Asian MicroStrategy, announced that the bonds will attract an interest of about 0.5% per annum and mature by June 25, 2025. Moreover, the company set the bond payment date at June 26, 2024.

With the prevailing bitcoin price, the new injection from Bond issuance will bring investment in nearly 100 BTC.

Metaplanet stated that Bitcoin intended for long-term holding will be recorded at cost, exempting it from end-of-term market value assessment taxation. Other BTC holdings will be evaluated at market value each quarter, with any valuation gains or losses reflected in the income statement under non-operating income or expenses.

The company only highlighted that the Bitcoin will be treated as current assets during financial reporting at the end of the fiscal year.

As reported earlier, Metaplanet purchased BTC on April 23, May 10, and June 11. In the latest acquisition, the company bought approximately 23.351 BTC. As of the time of this report, Metaplanet holds over 141 BTC as part of its investment portfolio.

Metaplanet Stock Surges

Following the announcement, the price of the Tokyo-listed companys stock surged through the roof, gaining over 12% in mere hours. According to Google Finance data, Metaplanet stock has gained over 8 Yen since the announcement, a testament to community support for the decision.

Metaplanets stock has gained about 67% in value in the past month alone, representing 38 Yen. Since the first BTC purchase merely two months ago, its stock has surged fivefold.

Like other companies investing in BTC, Metaplanet sees the investment potential in this asset. Metaplanets BTC purchases average $65,365, a little higher than the current BTC price of $61,300. However, its over $8K below the BTC all-time high of over $73,000.