Metaplanet Plans $745 Million Fundraising to Boost Bitcoin Reserves

Highlights:

• Metaplanet plans to issue 21 million shares to fund its Bitcoin purchase plan.
• The company is using a similar strategy used by the biggest corporate holder of Bitcoin.
• The plan includes various provisions that will protect investors during market volatility.

Japan’s Metaplanet has announced a fundraising plan to raise ¥116 billion ($745 million). Metaplanet will issue 21 million shares via 0% discount moving strike warrants, according to its plan. The company will use all the funds raised from this campaign exclusively for Bitcoin purchases.

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*Metaplanet Issues 21 Million Shares of 0% Discount Moving Strike Warrants, Proceeds To Raise Approximately ¥116 Billion to Purchase Additional $BTC; Largest Capital Raise in Asian Equity Markets History to Buy BTC* pic.twitter.com/DHI5ft4iKI

— Metaplanet Inc. (@Metaplanet_JP) January 28, 2025

Company Aims to Accumulate 21000 Bitcoins by 2026

Metaplanet hopes to have secured a total of 21,000 Bitcoins by the end of 2026 with a roadmap of two years. From the 1,761 BTC currently held, which were purchased at an average of ¥11.85 million per Bitcoin, the target is a huge jump. Metaplanet has already earned significant profits from its current holdings. The current market value of its Bitcoin reserves exceeds ¥27.7 billion.

Metaplanet has achieved unprecedented financial growth since it adopted the Bitcoin Standard in April 2024. In the Q4, the company reported a BTC yield increase of 309.82% from 41.7% in Q3.

The acquisition strategy employed here is similar to that of the biggest corporate holders, MicroStrategy. Recently, MicroStrategy has added 10,107 BTC to its treasury. Over the past eight months, Metaplanet has also steadily accumulated Bitcoin. The company currently holds over 1,761 BTC.

MicroStrategy has acquired 10,107 BTC for ~$1.1 billion at ~$105,596 per bitcoin and has achieved BTC Yield of 2.90% YTD 2025. As of 1/26/2025, we hodl 471,107 $BTC acquired for ~$30.4 billion at ~$64,511 per bitcoin. $MSTR https://t.co/UM5dGUS9Ma

— Michael Saylor⚡️ (@saylor) January 27, 2025

Key Details of the Fundraising and Stock Issuance Plan

The company will collaborate with EVO FUND on the stock acquisition rights. The company will commence trading these rights with an exercise price initially set at ¥5,555 and will adjust it daily based on the closing price of the company’s shares. By acting as a lower limit of ¥2,555, the exercise price ensures that dilution of shareholders is limited at the expense of excessive dilution.

Metaplanet has also introduced a suspension clause to assure stock price stability. Under this provision, the company can suspend the exercise of stock acquisition rights when markets experience volatility. The measure indicates that the company has a thoroughly worked-out plan to protect investors’ interests.

The company has also included a provision in the issuance to limit the number of shares exercised in any given month to 10% of listed shares. This gradual approach is intended to ease concerns over the rapid dilution of the shares and allow the company’s fundraising efforts to align with its strategic goals.

Strategic Allocation of Funds for BTC Acquisitions and Growth

Metaplanet plans to allocate ¥111.3 billion it raises to Bitcoin acquisitions. This decision aligns with the company’s financial management strategy to hedge against yen depreciation and inflation. By increasing its Bitcoin reserves, Metaplanet aims to preserve asset value and strengthen its economic position in the long term.

The remaining ¥5 billion will be directed toward Metaplanet’s Bitcoin treasury business, which generates revenue through put-option sales. Its income generation strategy allowed for profits of over ¥500 million in 2024, and the company is expected to continue to achieve operating profitability. The company will hold funds in bank deposit accounts to allow for flexibility.

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