Key Takeaways:
- Metaplanet’s Bitcoin Expansion: The Japanese firm plans to raise $62M via stock issuance, primarily to increase its Bitcoin holdings amid yen depreciation.
- Shift in Strategy: Metaplanet is deprioritizing metaverse projects due to low profitability, focusing on Bitcoin as a treasury asset.
- Corporate Trend: The move aligns with a growing trend of companies like Rumble and Genius Group adopting Bitcoin for their reserves.
Japanese investment firm Metaplanet plans to raise $62 million (9.5 billion yen) through a stock acquisition initiative to expand its Bitcoin holdings.
Currently holding 1,142 Bitcoin, valued at over $109 million, the firm will issue 29,000 stock acquisition rights to EVO Fund, a Cayman Islands-based investment manager.
*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
Proceeds will primarily fund Bitcoin purchases, aligning with Metaplanet’s strategy to counteract the yen’s depreciation by increasing cryptocurrency reserves.
The fundraising period runs from December 16, 2024, to June 16, 2025, under Japan’s Financial Instruments and Exchange Act.
If successful, the firm estimates acquiring approximately 652 Bitcoin at the current price of $95,000.
This move reflects Metaplanet’s strategic shift from metaverse ventures, deemed unprofitable, to Bitcoin acquisition as a core corporate treasury strategy.
The decision follows the firm’s October stock issuance, which raised $66 million for Bitcoin investments.
Metaplanet also cited Bitcoin’s all-time high price of $99,645.39 on November 22 and Japan’s unfavorable economic conditions as key motivations.
Metaplanet’s strategy mirrors a growing trend in corporate Bitcoin adoption, with companies like Rumble, Genius Group, and Semler Scientific also increasing Bitcoin reserves.
This highlights the increasing corporate confidence in Bitcoin as a hedge and strategic asset in volatile economic environments.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: