Metaplanet Raises $66 Million to Strengthen Bitcoin Holdings Through Stock Acquisition Rights

Metaplanet Raises $66 Million to Strengthen Bitcoin Holdings Through Stock Acquisition Rights

Japanese investment firm Metaplanet has successfully raised 10 billion yen ($66 million) through the completion of its 11th series of stock acquisition rights, further enhancing its Bitcoin investments. This capital raise is part of Metaplanet’s broader strategy to fortify its Bitcoin holdings after adopting the cryptocurrency as a reserve asset earlier this year, primarily to hedge against volatility in the Japanese yen.

The firm, which expressed concerns over the yen’s vulnerability due to Japan’s low-interest-rate environment, sees Bitcoin as a strategic asset to mitigate risks. Bitcoin is considered a hedge against inflation and a tool for macroeconomic resilience, particularly in the current global landscape characterized by inflationary pressures and geopolitical tensions.

Shareholders Purchase New Shares at Discounted Price

Metaplanet originally announced the stock acquisition rights on August 6, when the company’s share price hovered around 700 yen. This move allowed shareholders to purchase new shares at a discounted price of 555 yen per share. The stock acquisition rights were distributed to shareholders at no cost, with each shareholder receiving one right for every common stock they held.

The exercise period for these rights spanned from September 6 to October 15, with 72.8% of the 18.1 million rights exercised. This resulted in the issuance of 13.2 million new shares and raised approximately 7.32 billion yen ($48.5 million). Shareholders who did not exercise their rights transferred them without charge to entities including MMXX Ventures Limited, Metaplanet’s CEO Simon Gerovich, and the EVO Fund.

In a post on social media platform X, Gerovich confirmed that Metaplanet had also approved the transfer of unexercised rights to the EVO Fund, which committed to exercising all transferred rights by October 22, 2024. Upon completion, the total capital raised from these stock acquisition rights will reach 10 billion yen.

“We would like to thank all shareholders for their invaluable support and contribution, which strengthens Metaplanet’s mission of becoming a leading bitcoin treasury company,” Gerovich wrote.

Metaplanet's Bitcoin Holdings Surge

The capital raised from the transferred rights contributed an additional 5.7 billion yen ($37.8 million), bringing the total raised to 10 billion yen. According to Bitcoin Treasuries, Metaplanet now holds 861.4 BTC, marking a substantial increase in its Bitcoin reserves. The company's stock has surged by an impressive 642% year-to-date, underscoring the positive investor sentiment surrounding its strategic shift toward Bitcoin.

Partnership with Hoseki to Enhance Bitcoin Transparency

To further solidify its position in the Bitcoin space, Metaplanet has partnered with Hoseki, a global leader in Bitcoin verification solutions. This collaboration allows Metaplanet’s Bitcoin holdings to be independently verified using Hoseki Verified, thereby enhancing transparency and trust.

“As Bitcoin adoption proliferates globally, the importance of transparency cannot be overstated,” the company said in a statement. The verification process is designed to assure investors and stakeholders of the authenticity and security of Metaplanet's Bitcoin reserves.

Strategic Adoption of Bitcoin as a Reserve Asset

Metaplanet's decision to incorporate Bitcoin into its treasury was driven by multiple factors. In an update to shareholders, the firm highlighted Bitcoin’s potential as a hedge against inflation, its use as a tool for long-term capital appreciation, and its role in macroeconomic resilience. The decision also reflects the firm's concerns over Japan’s economic environment, particularly the yen’s vulnerability due to the country's persistently low interest rates.

The firm’s strategic shift toward Bitcoin mirrors broader trends, as corporate treasurers globally have begun exploring digital assets as part of their reserve holdings. This trend has been further fueled by ongoing macroeconomic uncertainties and increasing inflationary pressures. Just recently, Abra, a digital asset prime services platform, launched a service tailored for corporations looking to hold cryptocurrencies, like Bitcoin, as reserve assets on their balance sheets.

With the completion of its latest capital raise and the growing interest in Bitcoin as a reserve asset, Metaplanet is poised to strengthen its position as a leader in the Bitcoin treasury space, offering greater financial resilience and transparency.