Categories: Bitcoin Latest News

Metaplanet To Raise $70 Million To Buy More Bitcoin

Metaplanet, a publicly listed Japanese company, has announced plans to raise up to ¥10.08 billion ($70 million) through a gratis allotment of stock acquisition rights to existing shareholders. The majority of funds raised will be used to purchase additional Bitcoin.

JUST IN: 🇯🇵 Metaplanet announces to raise ¥10.08 billion to buy more #Bitcoin pic.twitter.com/HXBf7RNeMx

— Bitcoin Magazine (@BitcoinMagazine) August 6, 2024

The company will issue one stock acquisition right per common share to shareholders of record on September 5. These rights will allow shareholders to acquire Metaplanet common stock 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 ~$13.4 million. By raising $70 million, the company aims to significantly expand its Bitcoin treasury as part of its long-term growth strategy.

This move mirrors the approach pioneered by MicroStrategy, the Nasdaq-listed business intelligence firm. Since 2020, MicroStrategy has raised debt and sold shares to accumulate over 220,000 Bitcoin, now worth billions. 

By positioning itself as Japan’s leading publicly traded bitcoin holding company, Metaplanet hopes to follow MicroStrategy’s playbook and create similar shareholder value. It aims to pioneer Japanese listed firms in adopting Bitcoin as a reserve asset.

Bitcoin offers twin benefits as an asset with long-term appreciation potential that also hedges against fiat currency depreciation. Building a Bitcoin treasury strengthens the company’s balance sheet and supports future growth initiatives.

Disclaimer: Bitcoin Magazine is wholly owned by BTC Inc., which also operates UTXO Management, a regulated capital allocator focused on the digital assets industry and invested in Metaplanet. UTXO invests in a variety of Bitcoin businesses, and maintains significant holdings in digital assets. 

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