Key Takeaways
- Metaplanet plans to raise $62M to purchase 652 Bitcoin.
- The firm's Bitcoin holdings currently total 1,142 BTC, valued at $109M.
- The stock issuance will run from Dec. 2023 to June 2025.
Japanese investment firm Metaplanet has announced plans to raise $62 million (9.5 billion yen) to expand its Bitcoin holdings.
The company currently holds 1,142 BTC, valued at over $109 million.
Stock issuance
The funds will be raised through a stock acquisition plan, issuing 29,000 units of stock acquisition rights to EVO Fund, an investment firm based in the Cayman Islands.
Metaplanet intends to allocate the majority of the raised capital to purchasing approximately 652 Bitcoin, priced at about $95,000 per BTC as of now.
Bitcoin’s growing prominence
In a Nov. 28 statement, Metaplanet highlighted Bitcoin’s growing prominence, which was underscored when it hit a record high of $99,645.39 on Nov. 22.
Meanwhile, the depreciation of the Japanese yen, with the USD/JPY exchange rate hitting the 154 level, has further motivated the firm to increase its Bitcoin reserves.
Pending approval
The stock acquisition plan, pending approval under Japan’s Financial Instruments and Exchange Act, will run from Dec. 16, 2023, to June 16, 2025.
Metaplanet has temporarily shelved its metaverse-related business initiatives, citing their lack of profitability, to focus on Bitcoin as part of its corporate treasury strategy.
Previous stock issuance
This follows Metaplanet’s successful $66 million stock issuance in October, also used for Bitcoin purchases. The company first announced its Bitcoin acquisition strategy in April.
Metaplanet joins a growing list of companies adopting Bitcoin as a treasury asset, including Rumble, Genius Group, and Semler Scientific, which collectively expanded their holdings in November.
