Metaplanet issuance of $21 million zero-coupon bonds is solely for buying Bitcoin! What is hidden behind this "funding trick"?

Question

On May 29, Metaplanet Inc., a publicly listed company in Japan, announced that it has passed a board resolution to issue a total of $21 million in "17th series corporate bonds," with all raised funds to be invested in Bitcoin purchases. This bond issuance is limited to an institution named EVO FUND, and the bond conditions are extremely lenient — zero interest, unsecured, and redeemable in advance. Market observers point out that EVO FUND is likely a related party of the company; this operation, although unusual, is a strategically designed funding and asset allocation strategy.

Bond issuance conditions "Buddha's Heart": zero interest, unsecured, early repayment allowed.

According to the Metaplanet announcement, the face value of each bond is 525,000 USD, with a total issuance of 21 million USD. Although it is a bond, it does not pay any Interest and has no collateral or guarantor. This debt will be redeemed on November 28, 2025, or may be actively requested for early redemption by the investor EVO FUND.

Additionally, if Metaplanet conducts other fundraising in the future and is subscribed by the EVO FUND, as long as the amount of funds reaches a certain multiple, the company can repay in advance. The overall structure clearly has high flexibility and "internal friendly terms."

The use of funds directly targets Bitcoin: a clear and bold asset strategy.

Metaplanet states that the $21 million raised from this bond issuance will be used 100% to purchase Bitcoin. This is not the company's first foray into virtual assets, but it is the first time it has explicitly executed cryptocurrency asset allocation through corporate bond financing, demonstrating its high confidence in the prospects of Bitcoin. Against the backdrop of many companies around the world (such as MicroStrategy) continuously accumulating Bitcoin positions, Metaplanet's move may be an attempt to become the "representative of Asian Bitcoin companies."

Related party fund operations? The potential niche for this trick is here.

Although the background of the EVO FUND has not been explicitly revealed, it can be observed from the bond conditions and issuance method that there is likely an interest relationship with Metaplanet, or even friendly funds or internal resources. So, what are the niches of such operations? We have summarized the following four potential benefits:

Quickly obtain funds and flexibly buy coins

By issuing bonds through a friendly fund, the company can avoid the cumbersome public market capital increase process and obtain funds at "lightning speed," making operations more flexible in conjunction with Bitcoin market fluctuations.

Leverage in coins, do not use company cash

The funds come from external sources, allowing Metaplanet to convert its asset position into Bitcoin while maintaining cash flow. Similar to "buying a house with a loan," it enters the market using leverage.

The accounting and tax structure is more flexible.

By purchasing coins through bonds instead of cash, it can be presented in the balance sheet as "assets corresponding to liabilities," which may make it easier to manage accounting or tax risks.

Packaging into market narratives to boost stock price confidence

This type of operation has newsworthiness, and coupled with a clear Bitcoin allocation strategy, it easily attracts the attention of investors and the media, which is also beneficial for stock price performance and building confidence in the capital market.

How does this method differ from directly buying Bitcoin?

If you buy coins directly with cash on Metaplanet, although the operation is simple, you may face the following problems:

Faced with direct coin purchases, bond coin purchases, cash flow impact, reduced capital, cash retention, asset presentation, Bitcoin volatility risk directly reflects asset-liability hedging, risk isolation, operational flexibility, requiring one-time execution, redeemable at visible opportunities, flexible adjustments, market narrative, single-point messaging, and the ability to design topical strategies.

Through this "curve coin buying" method, the company not only retains cash on hand but also increases the operational space and strategic flexibility of its financial reports, which is a very smart leverage technique for a medium-sized enterprise.

Compared to buying coins, it feels more like a "narrative battle" in the capital market.

The Metaplanet operation seems to be just buying coins, but in fact, it is a designed financial structure and narrative layout. By collaborating with potential stakeholders' fund EVO FUND, it conducts a capital operation that is "low-cost, highly flexible, and highly topical," further strengthening the company's position as a flagship enterprise for Bitcoin in Japan.

This article Metaplanet issues $21 million zero-interest bonds just to buy Bitcoin! What is hidden behind this "funding trick"? Originally appeared in Chain News ABMedia.