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Japanese investment firm Metaplanet has announced plans to raise 9.5 billion yen (approximately $62 million) through a stock acquisition initiative to expand its Bitcoin holdings.
Stock Acquisition Plan
On November 28, Metaplanet confirmed it would issue its 12th Stock Acquisition Rights through a third-party allotment to EVO Fund, an investment firm based in the Cayman Islands. The issuance, totaling 29,000 units, is scheduled to run from December 16, 2024, to June 16, 2025, subject to approval under Japan's Financial Instruments and Exchange Act.
The firm stated that the majority of the funds would be allocated to purchasing additional Bitcoin. The firm, which currently owns 1,142 Bitcoin valued at over $109 million, intends to use the proceeds to strengthen its treasury amidst a weakening yen and rising Bitcoin prominence. If the entire $62 million is raised, Metaplanet could potentially acquire around 652 Bitcoin, based on current market prices of approximately $95,000 per Bitcoin.
Strategic Shift Towards Bitcoin
Metaplanet has emphasized the growing significance of Bitcoin, which recently achieved an all-time high of $99,645.39 on November 22. Simultaneously, the Japanese yen's depreciation, with the USD/JPY exchange rate reaching 154, has underscored the firm's urgency to diversify its reserves away from fiat currency.
Metaplanet stated,
“The majority of the funds raised this time will be strategically allocated for the purchase of additional Bitcoin. We have made it clear that we intend to utilize debt and periodic stock issuance to systematically increase our Bitcoin holdings while reducing exposure to a depreciating yen.”
Previous Bitcoin Investments
This is not Metaplanet’s first foray into Bitcoin acquisitions. In October, the firm completed its 11th Stock Acquisition Rights, raising $66 million, which was also allocated to Bitcoin purchases. Metaplanet first revealed its Bitcoin-focused treasury strategy in April 2023, aiming to systematically increase its holdings through periodic stock issuances and strategic use of debt.
Metaplanet's bold Bitcoin strategy has coincided with a dramatic 1,366% rise in its stock price over the past year, now trading at around $15.60. However, this is still significantly lower than its all-time high of $2,521.76 recorded in February 2013.
Broader Trend Among Corporations
Metaplanet's Bitcoin acquisition plans align with a broader trend of companies diversifying into the cryptocurrency. Recent examples include artificial intelligence firm Genius Group, which purchased 110 Bitcoin for $10 million; Chinese firm SOS Ltd, with plans for a $50 million BTC investment; and video streaming platform Rumble, with plans for a $20 million BTC acquisition. Plus, of course we have MicroStrategy regularly buying BTC.
As Bitcoin continues to gain prominence, Metaplanet’s proactive approach underscores its strategic pivot to adapt to the evolving financial landscape.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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