Metaplanet to Raise $62 Million for Bitcoin Expansion, Currently Holding 1,142 BTC

Metaplanet, a Japanese investment firm, has announced plans to raise over $62 million (9.5 billion Japanese yen) through a stock acquisition initiative aimed at expanding its Bitcoin holdings. The company currently holds 1,142 BTC, valued at over $109 million. Should the fundraising effort prove successful, Metaplanet could use the funds to purchase approximately 652 additional Bitcoin at the current market price of $95,000 per coin.

Strategic Move Toward Bitcoin Growth

On November 28, Metaplanet revealed that it plans to issue its 12th Stock Acquisition Rights to EVO Fund, a Cayman Islands-based investment management firm, through a third-party allotment of 29,000 units. The majority of the funds raised through this issuance will be used to bolster the firm’s Bitcoin treasury.

In the statement, Metaplanet made clear its ongoing commitment to growing its Bitcoin reserves. The company stated, “We have made it clear that we intend to utilize debt and periodic stock issuance to systematically increase our Bitcoin holdings while reducing exposure to a depreciating yen.”

Bitcoin’s Growing Prominence Amid Yen Depreciation

Metaplanet also highlighted the increasing significance of Bitcoin, especially after the cryptocurrency reached an all-time high of $99,645 on November 22, 2024. The firm expressed concern over the depreciation of the Japanese yen, which has continued to weaken, with the USD/JPY exchange rate returning to the 154 level on the same day. In light of these economic conditions, Metaplanet stressed the urgent need to expand its Bitcoin holdings.

“Given these circumstances, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to proceed with this fundraising initiative,” the company said.

Details of the Fundraising Plan

If approved under Japan’s Financial Instruments and Exchange Act, the stock acquisition rights will be active from December 16, 2024, through June 16, 2025. Metaplanet aims to raise the full $62 million, which would enable the company to acquire approximately 652 additional Bitcoin at the current price of $95,000.

Metaplanet Shifts Focus from Metaverse to Bitcoin

In addition to its Bitcoin-focused plans, Metaplanet announced that it is putting its “metaverse-related business plans” on hold due to a lack of profitability prospects. Instead, the company has decided to prioritize the acquisition and holding of Bitcoin as a core part of its corporate treasury strategy.

This move follows the completion of Metaplanet’s 11th Stock Acquisition Rights in October, which raised $66 million (10 billion Japanese yen) and was also allocated to Bitcoin purchases.

Bitcoin Adoption Gaining Traction

Metaplanet’s decision to increase its Bitcoin holdings is in line with a broader trend among companies embracing Bitcoin as part of their financial strategy. The company initially revealed its intention to acquire Bitcoin in April 2024, and since then, several other firms have made similar moves.

For example, YouTube alternative Rumble confirmed its plans to buy Bitcoin on November 25, just days after its CEO hinted at the idea on social media. Additionally, Genius Group, an AI firm, purchased 110 Bitcoin for $10 million on November 18, with plans to hold as much as 90% of its reserves in Bitcoin. Semler Scientific also made headlines in early November by acquiring 215 Bitcoin for $17.7 million in cash, bringing its total Bitcoin holdings to 1,273 BTC.

Metaplanet’s Stock Performance

Metaplanet has seen remarkable growth in its stock price over the past year, with an increase of 1,365.63%. The company’s stock is currently priced at about $15.60 (2,345 yen), though it remains significantly lower than its all-time high of $2,521.76 (379,000 yen), which was recorded on February 22, 2013.

As Bitcoin continues to gain acceptance as a store of value and hedge against inflation, companies like Metaplanet are positioning themselves to capitalize on its growing prominence, with many now seeing it as a cornerstone of their financial strategies.