Metaplanet, a Japanese investment firm, is looking to raise $62 million (9.5 billion yen) to expand its Bitcoin holdings, which currently amount to 1,142 BTC valued at over $109 million. The company plans to issue 29,000 units of its 12th Stock Acquisition Rights to EVO Fund, an investment firm based in the Cayman Islands.
In a statement released on November 28, Metaplanet revealed that most of the funds raised would be strategically invested in additional Bitcoin purchases. The firm emphasized its strategy of using a combination of debt and periodic stock issuance to gradually increase its Bitcoin reserves, aiming to mitigate the impact of the depreciating Japanese yen.
Bitcoin’s increasing prominence, following a record high of $99,645 on November 22, and the continued depreciation of the yen have prompted Metaplanet to focus on expanding its Bitcoin holdings. The company explained that this fundraising initiative is essential in the current economic climate.
If the fundraising is successful, Metaplanet could acquire approximately 652 additional Bitcoin at the current price of $95,000. The stock acquisition is set to run from December 16, 2024, to June 16, 2025, pending approval under Japan’s Financial Instruments and Exchange Act.
Metaplanet also announced a shift in its business focus, placing its metaverse-related plans on hold due to the lack of profitability. Instead, the firm will incorporate Bitcoin acquisition into its corporate treasury strategy. In October, Metaplanet raised $66 million in its 11th Stock Acquisition Rights offering, which was also used to purchase Bitcoin.
While the firm’s stock price has risen by 1,365.63% over the past year, it remains well below its peak of $2,521.76 in February 2013. Metaplanet’s decision follows a growing trend among firms adding Bitcoin to their balance sheets, with notable purchases from companies like Rumble and Genius Group in recent weeks.
