Metaplanet calls it ‘Peaks of money’ to invest $58 million in Bitcoin amid resurgence in Japanese market.
Reproduced image, from Metaplanet Ref.
Key receivers
Metaplanet has invested $58.76 million in Bitcoin as part of a massive fundraising effort. The investment is aimed at long-term asset appreciation and currency depreciation.
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Metaplanet, a Japanese investment and advisory firm billed as Asia's version of microstrategy, has announced plans to invest approximately ¥8.5 billion ($58.76 million) in Bitcoin through a stock options offering to shareholders. The move comes as part of a massive fundraising effort totaling nearly $10 billion ($69.13 million).
The Company's Board of Directors has approved the issuance of the 11th Series of Stock Acquisition Rights to all common shareholders free of charge. The rights will be distributed to shareholders from September 5, the allocation will be effective from September 6. Shareholders will receive one stock acquisition right for each share, with an exercise price of 555 yen per right.
Exercise timing and tax implications
The exercise period of general investors will last from September 6 to October 15, 2024, after which the unexercised rights will be acquired by the company. These rights are not listed or sold on exchanges. Foreign shareholders may face restrictions on the exercise of rights, and exercising rights with less than 100 shares will constitute fractional shares. The Company does not expect any tax implications upon the assignment or exercise of rights.
Metaplanet decided to allocate most of the raised funds to Bitcoin based on the cryptocurrency's long-term appreciation and devaluation of the currency, especially the strength of the yen. This investment strategy comes amid Japan's challenging economic climate, characterized by high levels of debt and prolonged high real interest rates.
The company views Bitcoin as a strategic financial asset that aligns with its vision of leveraging innovative financial strategies to drive corporate value and growth. According to Metaplanet CEO Simon Gerovitch, the company is “starting to exhibit characteristics associated with zombie companies” before getting into bitcoin strategically.
Corporate bond classification
In addition to the bitcoin purchase, Metaplanet plans to set aside 1 billion yen ($6.91 million) for corporate bond redemptions and 500 million yen ($3.46 million) for working capital. The company currently holds 245.992 bitcoins with a market value of ¥2,461 million as of July 31, 2024.
According to the Q&A page, Metaplanet chose this method to strengthen its financial base and increase corporate value, emphasizing that it provides equal opportunity to all shareholders while raising capital. The Company advises Shareholders to carefully consider the information provided and make investment decisions at their own risk.
In July, Metaplanet shares surged 10% after the company confirmed another Bitcoin purchase, signaling its emphasis on the crypto as a major treasury strategy. The company's bitcoin holdings are estimated to be 246 BTC worth around $13 million at the time of writing.
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