Metaplanet, a Japanese publicly traded company, has Advertise The company plans to raise up to 10.08 billion yen ($70 million) through a free allocation of stock acquisition rights to existing shareholders. The majority of the funds raised will be used to purchase additional bitcoins.
Latest News: 🇯🇵 Metaplanet announces raising 10.08 billion yen to buy more #Bitcoin pic.twitter.com/HXBf7RNeMx
— Bitcoin Magazine (@BitcoinMagazine) August 6, 2024
The company One share purchase right will be issued. Shareholders of record on September 5 will be granted equal rights for each common share. These rights will allow shareholders to purchase Metaplanet common shares at an exercise price of 555 yen (about $4) during the exercise period from September 6 to October 15.
Metaplanet currently holds around 246 bitcoins worth around $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, a Nasdaq-listed business intelligence firm. Since 2020, MicroStrategy has raised debt and sold equity to accumulate more than 220,000 bitcoins, now worth billions of dollars.
By positioning itself as the leading Bitcoin holding company in Japan, Metaplanet hopes to follow in MicroStrategy’s footsteps and create similar value for shareholders. It aims to be the first Japanese listed company to adopt Bitcoin as a reserve asset.
Bitcoin offers the dual benefits of being an asset with the potential to appreciate in value over the long term, and of protecting against the devaluation of fiat currency. 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 Managementa dedicated capital allocation entity 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.