Japanese Bitcoin Investment Firm Metaplanet Plans to Raise $745 Million
Japanese Bitcoin investment firm Metaplanet has announced its intention to raise 116 billion yen ($745 million) through the issuance of 21 million shares, as per a statement released on Jan. 28.
Significant Capital Raise
The firm intends to utilize the substantial capital raise to strengthen its Bitcoin holdings, a move that has been highlighted by Dylan LeClair, the director of Bitcoin strategy at Metaplanet. LeClair emphasized that this initiative marks the largest equity offering in Asia specifically aimed at Bitcoin acquisition.
Details of the Shares
- 21 million shares to be issued with a 0% discount moving strike warrant structure.
- Buyers can purchase stocks at a fixed price tied to the previous trading day’s closing price.
- 13th to 17th series of stock acquisition rights allotted to EVO FUND.
- Exercise period for warrants from Feb. 18, 2025, to Feb. 17, 2027.
- Total shares to increase by 21 million, resulting in a dilution rate of approximately 53.61% if all warrants are exercised.
Aggressive Bitcoin Acquisition Plans
Metaplanet’s objective with the capital raise is to significantly boost its BTC holdings as part of its broader crypto-focused strategy. The firm, currently holding 1,762 BTC valued at $181.66 million, plans to increase its reserves to 10,000 BTC by the end of 2025 and 21,000 BTC by 2026.
Aligning with its goal of leveraging Bitcoin as a reliable store of value amidst a weakening yen, Metaplanet aims to raise funds in yen and convert them into Bitcoin to preserve asset value and enhance its Bitcoin holdings.
Allocation of Funds
Out of the planned 116 billion yen raise, 111.3 billion yen will be allocated to the direct acquisition of Bitcoin, while the remaining 5 billion yen will support Bitcoin treasury operations. These operations, which involve options trading, generated over 500 million yen in profits last fiscal year.
Metaplanet believes that this strategic approach will drive its long-term growth and contribute to enhancing shareholder value.