Metaplanet Announces $62M Fundraising Plan to Strengthen Bitcoin Strategy

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As a seasoned crypto investor with a knack for spotting trends and a penchant for taking calculated risks, I find Metaplanet’s strategic shift towards Bitcoin intriguing. With my first investment in Bitcoin back in 2013 when it was trading at around $50, I’ve seen the rollercoaster ride this digital asset has been on.

As a crypto investor, I’m thrilled about the news that Metaplanet, a prominent Japanese investment firm, is planning to boost its Bitcoin portfolio. They aim to do this by securing around 9.5 billion yen (roughly $62 million) via a strategic stock acquisition move. This expansion of their Bitcoin holdings could potentially bring significant growth opportunities in the cryptocurrency market.

Stock Acquisition Plan  

On November 28th, Metaplanet announced that it intends to distribute its twelfth round of Stock Acquisition Rights via a third-party offering to EVO Fund, a Cayman Islands-based investment company. This offering, comprising 29,000 units, is planned for the period from December 16, 2024, to June 16, 2025, assuming approval under Japan’s Financial Instruments and Exchange Act.

The company has announced that it plans to use most of the funds it raises for buying more Bitcoins. Currently, this company owns 1,142 Bitcoins worth over $109 million, and they aim to reinforce their financial reserves due to a declining yen and increasing Bitcoin significance. If they manage to gather the entire $62 million, Metaplanet could potentially purchase approximately 652 Bitcoins at current market prices of around $95,000 per Bitcoin.

Strategic Shift Towards Bitcoin 

Metaplanet highlights the increasing importance of Bitcoin, hitting a record high of $99,645.39 on November 22. At the same time, the weakening Japanese yen, with the USD/JPY exchange rate reaching 154, reinforces the necessity for Metaplanet to diversify its currency reserves beyond traditional fiat money.

Metaplanet stated, 

Most of the money we’ve gathered recently will be smartly invested in buying more Bitcoin. It’s been stated that we plan to use debt and regular stock offerings to gradually grow our Bitcoin assets, all while lessening our vulnerability to the falling value of the yen.

Previous Bitcoin Investments  

Metaplanet has made Bitcoin acquisitions before, and one recent example was back in October when they completed their 11th Stock Acquisition Rights, which brought in $66 million for Bitcoin purchases. This strategy to focus on Bitcoin was initially announced by the company in April 2023, with plans to gradually increase its holdings through regular stock issuances and smart management of debt.

Metaplanet’s daring approach towards Bitcoin has mirrored a remarkable surge in its share value by approximately 1,366% over the past year, currently hovering near $15.60. Yet, this figure is considerably lower than its peak of $2,521.76 achieved back in February 2013.

Broader Trend Among Corporations  

Metaplanet’s intentions to acquire Bitcoin are consistent with a growing pattern among companies expanding their portfolios into the cryptocurrency sector. Companies such as Genius Group, an artificial intelligence firm, have recently bought 110 Bitcoins for $10 million. Similarly, Chinese company SOS Ltd has plans to invest $50 million in Bitcoin, and video streaming platform Rumble is considering a $20 million Bitcoin acquisition. Notably, MicroStrategy is also frequently purchasing Bitcoin.

With Bitcoin growing more significant, Metaplanet’s forward-thinking strategy showcases their intentional shift to align with the changing financial terrain.

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2024-11-29 17:01