Metaplanet, a Japanese investment company, is gearing up to secure ¥62 million in capital through the issuance of its 12th series of Stock Acquisition Rights (SARs).
The firm intends to allocate 29,000 units of SARs to EVO FUND, an investment management entity based in the Cayman Islands, through a third-party allotment process.
Every SAR unit provides EVO FUND with the opportunity to acquire 100 common shares at a price of ¥614 per right, resulting in a total value of ¥17.8 million.
By executing this initiative, Metaplanet aims to strengthen its financial position, with EVO FUND expected to exercise the rights on December 16.
Metaplanet’s Strategy for Crypto Fundraising
Metaplanet stressed its upcoming financial move by stating,
“The bulk of the funds raised this time will be strategically assigned for further Bitcoin acquisitions.”
The company also indicated that,
By opting for debt and periodic stock issuance, we’re focusing on incrementally boosting our Bitcoin holdings while mitigating exposure to a weakening yen.”
In light of Bitcoin’s surging popularity, especially after hitting a record high of $99,645.39 on November 22, Metaplanet highlighted the digital asset’s allure amidst yen devaluation.
“Meanwhile, the Japanese yen’s decline remains apparent, with the USD/JPY exchange rate dipping to 154 on the same day, creating continuous worries.”
Pending approval as per Japan’s Financial Instruments and Exchange Act, Metaplanet’s stock acquisition rights will be effective from December 16, 2024, to June 6, 2025.
Additional Details
If the full ¥62 million is successfully raised through the offering, the capital could facilitate the acquisition of around 652 Bitcoin [BTC].
This potential investment in Bitcoin underscores Metaplanet’s deliberate move towards broadening its financial asset base and exploring digital currencies as part of its expansion blueprint.
Over the past month, Metaplanet has demonstrated significant progress, concluding its 11th stock acquisition rights phase and securing ¥10 billion ($66 million).
Referred to as “Asia’s MicroStrategy,” Metaplanet mirrors MicroStrategy’s assertive Bitcoin acquisition strategy, encompassing direct purchases and options trading to enhance its Bitcoin reserves and generate additional income through premiums.
Metaplanet’s Recent Developments
Presently, Metaplanet holds 1,142 Bitcoin, valued at approximately $109 million.
Although the company’s stock has surged by 1,366% in the past year, it still falls significantly short of its peak at $2,521.76, as per Google Finance data.
Metaplanet’s recent collaboration with Bitcoin Magazine Japan, in conjunction with Bitcoin Magazine, marks a significant stride in expanding its influence within the Bitcoin sector.
This collaboration aligns with the company’s proactive stance on Bitcoin investments, resembling the tactics adopted by major industry players like MicroStrategy.
By engaging in Bitcoin acquisitions and cultivating strategic alliances, Metaplanet is solidifying its position as a pivotal contributor in the digital asset landscape, drawing lessons from successful Bitcoin-heavy enterprises while carving its niche in the Asian market.