Japanese Firm Metaplanet Inc. to invest Bitcoin worth $58.76 Million
Japanese investment firm Metaplanet Inc. announced in a statement released Tuesday that it is set to raise 10 billion yen (worth approximately $69.13 million) and plans to invest the majority of the fund $58.76 million in Bitcoin (BTC). According to the notice by the company regarding the gratis allotment of its 11th series of stock acquisition rights to existing shareholders.
*Metaplanet announces ¥10.08 billion Gratis Allotment of Stock Acquisition Rights; proceeds to fund additional purchases of $BTC* pic.twitter.com/4OdTFdHnfF
— Metaplanet Inc. (@Metaplanet_JP) August 6, 2024
On September 5, 2024, the stock acquisition rights will be allotted gratis to every common shareholder, the post added. Upon exercise, these rights entitle shareholders to purchase our common stock. In accordance with their shareholding ratio, each common shareholder will receive one stock acquisition right for each share of common stock they own. The decision to exercise the stock acquisition rights is entirely up to the shareholders. A shareholder need not take any further action if they decide not to exercise their rights.
According to the statement, each stock acquisition right has an exercise price of 555 yen (approximately $4). In order to utilize their stock acquisition rights, shareholders need to fill out an exercise request form and send it to the company along with the necessary payment. The exercise request form and payment must be completed by October 15, 2024, which is the deadline from the date of notification and exercise request form receipt, the post added.
In the event that stock acquisition rights are not exercised by October 15, 2024, the company will purchase them without payment. Following Board of Directors approval, the company may subsequently assign these rights to certain investors (henceforth referred to as "Specific Investors") at fair value.
The publicly traded investment and consulting company Metaplanet Inc. purchased $6.3 million worth of Bitcoin in June by issuing bonds. On July 8, the company purchased $2.5 million worth of Bitcoin for 400 million yen, for a total acquisition of 42.5 billion Bitcoin. Following the transaction, Metaplanet acquired 203.7 BTC, with each BTC being purchased for approximately 10 million yen, or $62,000. The company made the announcement of its entry into Bitcoin in April. It adopted the cryptocurrency as a Treasury asset and paid $6.5 million for its initial holdings.
At the moment, Metaplanet has roughly 246 Bitcoins valued at $13.4 million. The company wants to raise $70 million to significantly expand its Bitcoin treasury as part of its long-term growth strategy. This move aligns with the strategy that was pioneered by the business intelligence company MicroStrategy, which is listed on Nasdaq. Michael Saylor MicroStrategy has amassed over 220,000 Bitcoin, now valued at billions, since 2020 through debt financing and share sales.
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