Key Highlights:
- Metaplanet plans to raise $5.3 billion through the issuance of 555 million shares aimed at acquiring more Bitcoin.
- The company targets to possess over 210,000 BTC by 2027, seeing it as a defense against Japan’s economic pressures.
- This is noted to be the largest stock warrant issuance in Japan, utilizing moving strike warrants.
Metaplanet, a firm listed in Tokyo, is strategizing a significant push to expand its Bitcoin reserves by initiating a $5.3 billion offering, issuing 555 million shares through acquisition rights to procure additional Bitcoin.
According to Metaplanet, this initiative marks the largest ever stock warrant issuance in Japan and introduces moving strike warrants, which adjust the exercise price based on market conditions, sold at current share value or higher for the first time in the nation.
Continuation of the 555 Million Plan
This capital-raising effort is part of what Metaplanet refers to as its “555 Million Plan,” which follows the previous “21 Million Plan” that raised $600 million earlier this year, allowing the company to acquire nearly 9,000 BTC.
The fresh endeavor aims for sufficient funds to elevate its Bitcoin inventory to over 210,000 BTC by 2027, representing approximately 1% of the overall Bitcoin supply.
Investment Allocation
Of the capital raised, Metaplanet intends to allocate nearly 96% toward direct Bitcoin purchases. Minor portions will be allocated for bond redemptions and income-generating activities, such as selling put options.
The company views Bitcoin as a protective measure against Japan’s enduring negative interest rates and a declining yen. To mitigate shareholder dilution, the issuance comes with a stipulated minimum exercise price and grants the company rights to momentarily suspend conversions. Shares will be sold to EVO FUND, a Cayman-based entity that has previously supported Metaplanet’s financing initiatives.
So far this year, Metaplanet’s shares have surged over 275% as the firm advances its Bitcoin accumulation strategy, despite a 1.6% decline in the latest trading session.
