Originally published on: November 29, 2024
Japanese investment firm Metaplanet is gearing up to raise over $62 million (9.5 billion Japanese yen) through a stock acquisition plan to expand its Bitcoin treasury. The company’s existing stash of 1,142 Bitcoin, currently valued at over $109 million, will see a significant boost with this new funding initiative.
In a recent statement, Metaplanet announced its intention to issue a 12th Stock Acquisition Rights to EVO Fund, an investment management firm based in the Cayman Islands. Through a third-party allotment of 29,000 units, the firm aims to strategically allocate the majority of the raised funds towards purchasing additional Bitcoin.
Metaplanet emphasized its commitment to leveraging debt and periodic stock issuance to steadily increase its Bitcoin holdings while mitigating exposure to the fluctuating Japanese yen. With Bitcoin’s value soaring to staggering heights, the company recognizes the urgent need to bolster its cryptocurrency reserves amid concerns over the yen’s depreciation.
The fundraising initiative, subject to approval under Japan’s Financial Instruments and Exchange Act, is slated to run from Dec. 16, 2021, to June 16, 2025. If successful in raising the full $62 million, Metaplanet could acquire approximately 652 Bitcoin at the current market price.
This move comes as Metaplanet pivots from its metaverse-related business plans, citing profitability concerns. Instead, the firm has opted to integrate Bitcoin purchase and holding into its corporate treasury strategy, viewed as a strategic and long-term investment.
With an impressive track record in the financial landscape, Metaplanet’s stock price has surged by 1,366% over the past year, hovering around $15.60. Despite this growth, the stock still trails its all-time high set in 2013, indicating potential for further upward momentum.
Metaplanet joins a growing cohort of companies diversifying their portfolios with Bitcoin. Recent additions include YouTube alternative Rumble and AI firm Genius Group, affirming the cryptocurrency’s credibility as an appealing asset class within corporate treasury strategies. As the market continues to embrace digital assets, Metaplanet’s forward-thinking approach positions the firm for sustained growth and innovation in the evolving financial landscape.
