Metaplanet, a Japanese investment company focused on Bitcoin accumulation, has announced plans to raise 9.5 billion yen (approximately $62 million) to increase its Bitcoin holdings.
The company announced its 12th stock issuance in a notice dated November 28. Metaplanet will issue 29,000 warrants per 100 shares to Cayman Islands investment management company EVO Fund.
*Metaplanet announces issuance of Moving Strike stock acquisition rights to raise up to 9.5 billion yen ($62 million) to accelerate Bitcoin* pic.twitter.com/bL7rs6Qkk4
— Metaplanet Co., Ltd. (@Metaplanet_JP) November 28, 2024
“The majority of the funds raised will be strategically allocated to the purchase of additional Bitcoin,” the notice reads. “We have made clear that we intend to systematically increase our Bitcoin holdings using debt and regular equity issuance, while reducing our exposure to a weaker yen.”
Metaplanet further highlighted that Bitcoin's “prominence continues to grow” after the cryptocurrency reached nearly $100,000 earlier this month. On the other hand, “the yen continues to weaken, and the dollar/yen exchange rate on the same day returned to the 154 yen level, which continues to cause concerns.''
“Given these circumstances, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to proceed with this fundraising effort,” the company concluded.
The share acquisition still requires approval from local regulators under Japan's Financial Instruments and Exchange Act. If approved, the operation will run from December 16, 2024 to June 16, 2025. At the current price of approximately $98,000 per Bitcoin, the company will receive over 638 BTC in the transaction process.
Metaplanet has also put its “Metaverse-related business plans” on hold because “the outlook for profitability is not yet clear and we have decided to incorporate the purchase and holding of Bitcoin as part of our corporate financial strategy.” He said he had decided to do so.
The comments follow public disappointment with the outcome of the Metaverse, which Meta (formerly Facebook) is developing after investing $177 billion through summer 2022. As Decrypt reported at the time, the platform's graphics were heralded as cutting edge. The Metaverse looks about the same, if not worse, than the virtual world Second Life from 20 years ago.
MicroStrategy Bitcoin Playbook
In acquiring Bitcoin for its own treasury, MetaPlanet is following in the footsteps of US business intelligence firm MicroStrategy, which has pursued an aggressive Bitcoin purchasing strategy under the direction of Chairman Michael Saylor.
MicroStrategy currently accounts for well over 1% of the 21 million Bitcoin supply, and Saylor has promoted his “Bitcoin Strategy” to a number of companies, including Tesla and more recently Microsoft.
Still, after seeing renewed interest at the start of the current crypto bull market, MicroStrategy's stock price plummeted 16% as Bitcoin neared $100,000. At the time, one analyst explained why his company took a short position in MicroStrategy while maintaining a long position in Bitcoin.
Daily debriefing newsletter
Start each day with the current top news stories, plus original features, podcasts, videos, and more.
