Metaplanet—a Japanese investment firm focused on accumulating Bitcoin—announced plans to raise ¥9.5 billion (around $62 million), to grow its holdings of the cryptocurrency.
A notice issued on Nov. 28, announced the 12th stock offering. Metaplanet has agreed to issue 29,000 stock purchase rights, each for 100 shares, to Cayman Islands-based investment management company EVO Fund.
*Metaplanet Announces Issuance of Moving Strike Stock Acquisition Rights to Raise Up to ¥9.5 billion ($62 million) for Accelerated Bitcoin Accumulation* pic.twitter.com/bL7rs6Qkk4
— Metaplanet Inc. (@Metaplanet_JP) November 28, 2024
“The majority of the funds raised this time will be strategically allocated for the purchase of additional Bitcoin,” This is what the warning says. “We have made it clear that we intend to utilize debt and periodic stock issuance to systematically increase our Bitcoin holdings while reducing exposure to a depreciating yen.”
Metaplanet has highlighted Bitcoin’s importance. “prominence continues to grow” After it almost hit $100,000 earlier in the month. On the other side, “the Japanese yen continues to depreciate, with the USD/JPY exchange rate returning to the 154 level on the same day, presenting ongoing concerns.”
“Given these circumstances, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to proceed with this fundraising initiative,” The firm concluded.
Japan’s Financial Instruments and Exchange Act still requires local regulators to approve the acquisition of stock. The operation, if approved, will run from December 16, 2024 to June 16, 2025. The company will acquire 638 BTC at the current Bitcoin price of $98,000.
Metaplanet said it also decided to abandon its “metaverse related businesses plans” You can also find out more about us on our website. “there is still no prospect of profitability, and has decided to incorporate the purchase and holding of Bitcoin as part of our stated corporate treasury strategy.”
Meta, formerly Facebook, invested $177 billion by 2022 in the Metaverse. The company was disappointed with the result. As Decrypt reported at the time, the platforms' graphics being heralded as at the forefront of the metaverse look about the same—if not worse—than the 20-year-old virtual world Second Life.
MicroStrategy Bitcoin playsbook
Metaplanet has followed in the footsteps MicroStrategy’s aggressive Bitcoin purchase strategy, led by its Chairman Michael Saylor.
MicroStrategy has now accumulated well over 1% (21 million) of Bitcoin supply. Saylor’s touting his “Bitcoin playbook” Tesla, and most recently Microsoft.
MicroStrategy’s stock plunged 16% when Bitcoin reached $100,000. The analyst who explained the reason why they were long Bitcoin but short MicroStrategy at that time was a former employee of their company.