Metaplanet Plans $62 Million Raise to Expand Bitcoin Holdings
Metaplanet, a Japanese investment firm, announced plans to raise $62 million by issuing its 12th Stock Acquisition Rights (SARs) series. This initiative aims to expand its Bitcoin holdings amid a declining yen and rising cryptocurrency values.
Details of the Metaplanet SAR Deal
Metaplanet will offer 29,000 SAR units to EVO FUND, a Cayman Islands-based investment entity. Each unit allows the purchase of 100 shares at a price of 614 yen per right. If EVO FUND exercises all rights by December 16, 2024, Metaplanet will secure approximately 9.5 billion yen, contingent upon compliance with Japan's Financial Instruments and Exchange Act.
*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
Previously, Metaplanet raised 10 billion yen ($66 million) through its 11th series of SARs. The firm focuses on Bitcoin as a core element of its strategy, utilizing debt and equity issuances to enhance its reserves.
Bitcoin at the Core: Metaplanet’s Strategic Treasury Shift
Metaplanet views Bitcoin as a hedge against the yen's depreciation and as a valuable asset, especially after its recent surge above $99,000. The firm currently holds 1,142 Bitcoin units valued at about $109.16 million, positioning it as a notable institutional buyer, comparable to MicroStrategy Inc.
Metaplanet employs options trading to increase its Bitcoin reserves, earning it the moniker “Asia’s MicroStrategy.” Additionally, the company secured an exclusive licensing deal to launch Bitcoin Magazine in Japan, aimed at promoting Bitcoin adoption and education within the country.
Other companies, including Tesla and Block, Inc., have also adopted similar Bitcoin-focused strategies, recognizing its potential as a safeguard against economic instability.