Japanese investment firm Metaplanet is looking to bolster its Bitcoin reserves by raising over $62 million (9.5 billion Japanese yen) through a stock acquisition initiative.
The firm’s current Bitcoin treasury stands at 1,142 BTC, valued at more than $109 million.
In a statement issued on 28 November 2024, Metaplanet announced plans to issue its 12th Stock Acquisition Rights to EVO Fund, a Cayman Islands-based investment firm.
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The Offering to Involve 29,000 Units
The offering, structured as a third-party allotment, will involve 29,000 units. “The majority of the funds raised this time will be strategically allocated for the purchase of additional Bitcoin,” the company stated.
Metaplanet emphasized its intent to leverage both debt and periodic stock issuance to systematically grow its Bitcoin holdings while minimizing exposure to the weakening Japanese yen.
Bitcoin’s recent performance appears to bolster this strategy, with the cryptocurrency reaching an all-time high of $99,645.39 on November 22. Simultaneously, the yen’s value has continued to slide, with the USD/JPY exchange rate hitting 154.
JUST IN: Japanese Publicly traded Company Metaplanet to raise up to $62 million to purchase more Bitcoin. pic.twitter.com/XAvFDLAgWh
— Maria Hamilton (@Mil_21m) November 28, 2024
“Given these circumstances, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to proceed with this fundraising initiative,” the company noted.
If approved under Japan’s Financial Instruments and Exchange Act, the stock acquisition will run from December 16, 2024, to June 16, 2025. At the current Bitcoin price of approximately $95,000, the raised funds could facilitate the purchase of around 652 BTC.
This isn’t Metaplanet’s first foray into Bitcoin acquisitions. In October, the firm raised $66 million (10 billion Japanese yen) through its 11th Stock Acquisition Rights, also allocated to Bitcoin purchases.
Since first flagging its Bitcoin strategy in April, Metaplanet’s stock price has surged 1,365.63% over the past year, trading at approximately $15.60 (2,345 yen). However, the stock remains far below its 2013 peak of $2,521.76 (379,000 yen).
Metaplanet’s decision to prioritize Bitcoin has come at the expense of its metaverse-related ventures, which it has put on hold due to a lack of profitability.
“We have decided to incorporate the purchase and holding of Bitcoin as part of our stated corporate treasury strategy,” the firm stated.
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More Companies Invest in Bitcoin
Other companies are also turning to Bitcoin to diversify their treasuries. Video platform Rumble announced plans to invest in Bitcoin on November 25, while Genius Group recently acquired 110 BTC for $10 million, aiming to hold up to 90% of its reserves in Bitcoin.
Furthermore, healthcare technology firm Semler Scientific has expanded its Bitcoin portfolio. It purchased an additional 47 BTC for $3 million. The acquisition brings the company’s total holdings to 1,058 BTC as part of its ongoing strategy to accumulate Bitcoin.
The company has positioned Bitcoin as its primary treasury asset. It purchased 141 BTC for $8.4 million in the third quarter alone. Semler’s strategy mirrors that of MicroStrategy, which holds 252,220 BTC, making it the largest public corporate holder of Bitcoin.
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