Metaplanet (TYO:3350) will adopt a new net interest income initiative by adding a scalable, high-return recurring earnings base to its Bitcoin treasury strategy, according to a Tokyo bourse filing on Monday.
Through the plan, the company will raise capital through several funding sources and invest it in assets that will yield stable income.
Main investment targets will be preferred securities issued by Bitcoin treasury companies and similar issuers.
The company aims to earn net interest margin from these investments, which is the difference between the assets' yield and its cost of capital.
The move will anchor a reduced effective cost of capital, support its preferred dividends and interest obligations, as well as source funding for more Bitcoin purchases.
Bitcoin will continue to be the company's core asset at about 85% to 90% of its total assets, while the other assets under the new initiative will make up about 10% to 15%.
Shares of the company fell more than 1% in Tuesday trade.
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