Metaplanet, a publicly traded Japanese company, has Announced plans to raise up to ¥10.08 billion (US$70 million) through a free allocation of stock acquisition rights to existing shareholders. The majority of the funds raised will be used to purchase more bitcoins.
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BREAKING: Metaplanet announces it will raise ¥10.08 billion to purchase more twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin image.twitter.com/HXBf7RNeMx
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1820796403196563803?ref_src=twsrc%5Etfw”>August 6, 2024
The company will issue a right to acquire shares per common share to shareholders of record on September 5. These rights will allow shareholders to acquire Metaplanet common shares at an exercise price of 555 yen (~$4) during the exercise period from September 6 to October 15.
Metaplanet currently holds around 246 bitcoins worth approximately $13.4 million. By raising $70 million, the company aims to significantly expand its bitcoin treasury as part of its long-term growth strategy.
The move mirrors an approach pioneered by MicroStrategy, the Nasdaq-listed business intelligence company. Since 2020, MicroStrategy has raised debt and sold stock to accumulate more than 220,000 bitcoins, now worth billions.
By positioning itself as the leading Japanese publicly traded company holding bitcoin, Metaplanet hopes to follow MicroStrategy’s lead and create similar value for shareholders. It aims to be a pioneer among Japanese publicly traded companies in adopting bitcoin as a reserve asset.
bitcoin offers two advantages: it is an asset with long-term appreciation potential that also protects against fiat currency depreciation. Creating a treasury in bitcoin strengthens the company's balance sheet and supports future growth initiatives.
Disclaimer: bitcoin Magazine is wholly owned by btc Inc., which also operates UTXO Managementa regulated capital allocator focused on the digital asset industry and invested in Metaplanet. UTXO invests in a variety of bitcoin businesses and holds significant stakes in digital assets.
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