Japanese investment firm Metaplanet is looking to bolster its Bitcoin reserves by raising more than $62 million (9.5 billion Japanese yen) through a stock initiative.
The company’s current Bitcoin treasury stands at 1,142 BTC, valued at more than $109 million.
In a statement issued November 28, 2024Metaplanet has announced its intention to issue its 12th share purchase rights to EVO Fund, an investment company based in the Cayman Islands.
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The offer will cover 29,000 units
The offer, structured as a third-party allocation, will cover 29,000 units. “The majority of funds raised this time will be strategically allocated to purchase additional Bitcoin,” the company said.
Metaplanet highlighted its intention to leverage both debt and periodic equity issuances to systematically increase its Bitcoin holdings while minimizing exposure to the weakening Japanese yen.
Bitcoin’s recent performance appears to reinforce this strategy, with the cryptocurrency reaching an all-time high of $99,645.39 on November 22. At the same time, the value of the yen continued to fall, with the USD/JPY exchange rate reaching 154.
JUST IN: Japanese publicly traded company Metaplanet will raise up to $62 million to buy more Bitcoin. pic.twitter.com/XAvFDLAgWh
-Maria Hamilton (@Mil_21m) November 28, 2024
“Given these circumstances, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to continue with this fundraising initiative,” the company noted.
If approved under Japan’s Financial Instruments and Foreign Exchange Act, the share acquisition will take place from December 16, 2024 to June 16, 2025. At The current price of Bitcoin is around $95,000, the funds raised could facilitate the purchase of around 652 BTC.
This is not Metaplanet’s first foray into Bitcoin acquisitions. In October, the company raised $66 million (10 billion Japanese yen) through its 11th stock rights, also allocated to Bitcoin purchases.
Since first reporting its Bitcoin strategy in April, Metaplanet’s stock price has surged 1,365.63% over the past year, trading at around $15.60 (2,345 yen). However, the stock remains well below its 2013 high of $2,521.76 (379,000 yen).
Metaplanet’s decision to prioritize Bitcoin came at the expense of its Metaverse-related projects, which it put on hold due to lack of profitability.
“We decided to integrate the purchase and holding of Bitcoin as part of our declared corporate treasury strategy,” the company said.
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More and more companies are investing in Bitcoin
Other businesses are also turning to Bitcoin to diversify their cash flow. Rumble Video Platform announced plans to invest in Bitcoin on November 25, while Genius Group recently acquired 110 BTC for $10 million, with the aim of holding up to 90% of its reserves in Bitcoin.
Additionally, health technology company Semler Scientific expanded its Bitcoin portfolio. He purchased an additional 47 BTC for $3 million. The acquisition brings the company’s total holdings to 1,058 BTC as part of its continued Bitcoin accumulation strategy.
The company has positioned Bitcoin as its primary treasury asset. He purchased 141 BTC for $8.4 million in the third quarter alone. Semler’s strategy mirrors that of MicroStrategy, which holds 252,220 BTC, making it the largest public company holding Bitcoin.
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