Metaplanet Plans Significant Fundraising Initiative
Japanese investment firm Metaplanet has announced its intention to raise $62 million through the issuance of its 12th series of Stock Acquisition Rights (SARs). This initiative aims to strengthen the company’s financial position and expand its Bitcoin reserves.
Details of the Stock Acquisition Rights Issuance
On November 28, 2024, Metaplanet revealed that it would issue the new SARs to EVO FUND, a Cayman Islands-based investment entity, via a third-party allotment. Under this arrangement, EVO FUND will have the right to acquire shares of Metaplanet’s stock starting on December 16, 2024. The company is allocating 29,000 units of SARs, with each unit allowing the purchase of 100 common shares at a cost of 614 yen per right. This brings the total issuance price to approximately 17.8 million yen.
Should EVO FUND choose to exercise all its rights, Metaplanet could potentially raise up to 9.5 billion yen (or $62 million). However, this transaction is pending approval under the Financial Instruments and Exchange Act, highlighting the regulatory considerations involved in such financial maneuvers.
Enhancing Bitcoin Holdings
Reflecting on its financial strategy, Metaplanet has stated that the primary objective of this fundraising effort is to increase its Bitcoin holdings. In prior announcements, the firm has transitioned to a strategy that concentrates solely on Bitcoin for treasury management, spurred by recent market dynamics and the depreciating value of the Japanese yen.
The firm emphasized the critical need to bolster its Bitcoin reserves amidst a favorable market, noting, “We recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to proceed with this fundraising initiative,” especially in light of Bitcoin’s recent record highs.
Growing Reputation and Recent Developments
Last month, Metaplanet marked a successful conclusion of its 11th series of stock acquisition rights, raising 10 billion yen ($66 million). In addition to its fundraising efforts, the company has also partnered to launch Bitcoin Magazine in Japan, aiming to deliver localized, high-quality content tailored for the Japanese Bitcoin community. This collaboration represents Metaplanet’s commitment to enhancing the presence and understanding of Bitcoin in Japan.
Metaplanet has gained notoriety for its aggressive Bitcoin acquisition strategy, likened to that of MicroStrategy, which has earned it the moniker “Asia’s MicroStrategy.” The company employs a dual approach, engaging in both direct Bitcoin purchases and options trading, thereby increasing its Bitcoin reserves and generating income through trading premiums.
Current Bitcoin Holdings
As of now, Metaplanet holds 1,142 Bitcoins, equivalent to roughly $109.16 million based on current market valuations, according to data from Bitcoin Treasuries. This significant investment underscores the company’s commitment to its innovative financial strategy and its belief in Bitcoin’s future potential.