Metaplanet Plans $62 Million Fundraising to Increase Bitcoin Investments
Metaplanet, a Japanese investment company, plans to raise $62 million to increase its Bitcoin holdings by issuing stock acquisition rights to EVO Fund. This strategy emphasizes Metaplanet’s "Bitcoin-first" approach, focusing on managing its treasury with Bitcoin while reducing reliance on the weakening yen.
Starting December 16, 2024, Metaplanet will issue 29,000 units of stock acquisition rights at 614 yen per unit, totaling 17.8 million yen. This issuance is the company's 12th this year, following an October issuance that raised $66 million, primarily for Bitcoin acquisitions. The company's stock price has increased over 1,000% in 2024, indicating strong investor confidence in its strategy.
Other publicly traded companies are also increasing their Bitcoin reserves. MicroStrategy recently added $5.4 billion worth of Bitcoin to its treasury in November, spending over $16 billion this year and remaining the largest institutional Bitcoin holder. Its stock price has surged 450% in 2024, positioning it among the top 100 U.S. companies.
Marathon Digital raised $1 billion through a convertible senior notes offering, primarily for Bitcoin purchases. In China, SOS Limited purchased $50 million worth of Bitcoin, resulting in a 100% increase in its stock price. These actions indicate growing institutional interest in Bitcoin as a store of value and hedge against inflation.
The rising price of Bitcoin contributes to market optimism. Despite reaching $99,000 this year, firms like Metaplanet and MicroStrategy remain bullish about its future potential. Pantera Capital projects Bitcoin could reach $740,000 by 2028, reinforcing the industry's optimistic outlook.
Metaplanet’s strategic moves this year reflect its commitment to systematically increasing its Bitcoin holdings. By utilizing stock issuance and debt effectively, the company strengthens its market position. As public firms continue to invest heavily in Bitcoin, this trend signals a growing belief in the cryptocurrency's long-term value. Metaplanet's approach illustrates a broader institutional shift towards recognizing Bitcoin as a key financial asset.