Zero-interest bonds came out as a new kind of investment vehicle all in response to cryptocurrency investment‘s changing environment, and Metaplanet’s $50 million issuance of these bonds means that they have come a long way. Metaplanet, an investment firm listed in Tokyo, plans to use these zero-interest bonds to raise capital purely for the purpose of buying more bitcoin. That is an interesting way of doubling down on digital assets.

Key Takeaways:

• Metaplanet has issued $50 million in zero-interest bonds, which don’t carry any interest payments, solely to purchase more Bitcoin.
• These bonds are unsecured bonds without any collateral or administratively guaranteed bonds, issued in $1.25 million denominations.
• The exclusive subscriber and long-term funder of Metaplanet’s zero-interest bond series is Evo Fund, an investment fund in the Cayman Islands.
• The bond’s maturity date is November 27, 2025, with redemption at par value, as well as the possibility of early redemption under select circumstances.

Details of the Zero-Interest Bonds

Metaplanet’s new bond issue involves zero-interest bonds with a face value of $1.25 million each, and a total issuance of $50 million, exclusively to go into Bitcoin. The bonds do not pay out any interest, and do offer investors returns solely from redemption at par (face value) at the time of maturity. Maturity of this 16th series of ordinary bonds is set for November 27, 2025.

As unsecured bonds, the bonds are issued with neither collateral nor administrative guarantee. Metaplanet is placing a considerable amount of trust in Evo Fund, the only bondholder of Metaplanet’s bonds, a Cayman Islands-based investment firm, which has consistently financed Metaplanet’s purchasing strategy of Bitcoin.

In addition to the mature redemptions, these bonds contain allowances for early redemption in certain scenarios. This gives Metaplanet flexibility in debt management, specifically with respect to timelines in partnership with Evo Fund’s future capital raises.

These arrangements suit Metaplanet’s high-octane Bitcoin treasury strategy since the raised capital through this issuance is intended to be deployed immediately to purchase additional Bitcoin and further entrench Metaplanet’s reputation as a leading corporate supporter of Bitcoin adoption in Asia.

Evo Fund as Sole Bondholder

Evo Fund, an investment firm based in the Cayman Islands, is the only subscriber and the sole backer in Metaplanet’s most recent bond issuance, totaling $50 million in zero-interest unsecured bonds. This private placement highlights a deep and continuing relationship, whereby Evo Fund continues to underwrite several rounds of Metaplanet’s zero-coupon bonds, which are used exclusively for investing in Bitcoin.

This recent bond issue is the 16th series of ordinary bonds Evo Fund has taken, now totaling approximately $100 million raised through these zero-interest bond offerings. Evo Fund’s unwavering support has helped propel Metaplanet’s incredibly aggressive Bitcoin-buying activity, thereby steadily increasing Metaplanet’s BTC holdings.

Their partnership is even more impressive based on the bonds’ terms—$1.25 million per bond issued, payable at par—and all bonds are irrefutably zero-interest, unsecured, and without any collateral.

Expanding Bitcoin Holdings

Metaplanet is stepping up its Bitcoin buying with an audacious plan to put the $50 million raised from zero-interest bonds toward purchasing only new Bitcoin. Highlighting Metaplanet’s aggressive Bitcoin accumulation strategy, the company has its goals set on becoming one of the world’s largest corporate holders of BTC, especially in Asia.

By using different capital market tools, such as bond issuances and equity offerings, Metaplanet is following a route similar to MicroStrategy’s famous approach when it relates to Bitcoin acquisitions by employing a debt strategy. The discipline of focusing on only growing Bitcoin treasury aligns with Metaplanet’s viewpoint of treating success in terms of Bitcoin rather than in fiat and treating the currency as the asset itself and ultimate exit for shareholders.

As a top advocate of bitcoin adoption and treasury diversification in Asia, Metaplanet aims to not just acquire bitcoins, but to strategically do so. The company plans to reach 10,000 BTC by the end of 2025 and 21,000 BTC by 2026.

Conclusion

Metaplanet‘s zero-interest bond issuance, which raised $50 million, is an entirely new way to raise capital to fund Bitcoin purchases that could help shape the future of how corporations account for their digital asset trades. By raising capital using bonds that don’t have an interest component, Metaplanet shows both financial creativity and the conviction that Bitcoin is a valuable strategic asset in the digital asset class. This announcement not only contributes to Metaplanet’s status as one of Asia’s largest corporate Bitcoin holders but also legitimizes Bitcoin within institutionalized and mainstream finance.