Metaplanet is currently at 1,142 BTC in reserves to raise $62M for more Bitcoin.
Japanese investment firm Metaplanet has treasury to raise more than $62 million (9.5 billion Japanese yen) to buy more bitcoins through a share purchase plan, which is currently worth more than $109 million at 1,142 bitcoins.
In a statement issued on November 28, the company said it will issue the 12th share acquisition rights to EVO Fund, an investment management firm based in the Cayman Islands, through a third party for a total of 29,000 units.
“Most of the funds raised at this time will be strategically allocated to the purchase of additional bitcoins,” Metaplanet said in a statement.
“We have made it clear that we intend to use debt and current equity offerings to systematically increase our Bitcoin holdings and reduce our exposure to the yen.”
Source: Metaplanet
Metaplanet says Bitcoin (BTC) “continues to grow in popularity” after reaching an all-time high of $99,645.39 on November 22.
“Meanwhile, the value of the Japanese yen continues to decline, the USD/JPY exchange rate returned to the 154 level on the same day, presenting continued concerns,” the company said in a statement.
“Given these circumstances, we recognize the urgent need to increase Bitcoin holdings and have decided to continue with this fundraising initiative.”
Subject to approval by Japan's Financial Instruments and Exchange Act, the share buyback will run from December 16 to June 16, 2025.
If Metaplanet gets the full $62 million, it will be able to buy an additional 652 more bitcoins with its current $95,000.
Related: Japan's financial regulator It calls for lower crypto taxes by 2025
At the same time, the company stated that it is putting “Metaver-related business plans” on the back burner, “as there is still no hope of profitability, and has decided to include Bitcoin purchase and holding as part of our defined corporate. Treasury strategy.”
In October, Metaplanet completed its 11th rights acquisition, raising $66 million (10 billion Japanese yen) to buy bitcoin.
The company originally planned to buy Bitcoin in April. Metaplanet's stock price has risen 1,365.63 percent in the past year and is currently trading at $15.60 (2,345 Japanese yen), according to Google Finance.
However, it is still down from the all-time high of $2,521.76 (379,000 Japanese yen) set on February 22, 2013.
Metaplanet's stock price has risen over the past year, but is still down from an all-time high set in 2013. Source: Google Finance
A growing list of other firms have added bitcoin to their balance sheets this year.
YouTube option Rumble confirmed plans to buy Bitcoin on November 25, days after its CEO teased the idea on social media.
Artificial intelligence firm Genius Group took action on November 18 by buying 110 bitcoins for $10 million.
Tech solutions provider Semler Scientific acquired an additional 215 bitcoins for $17.7 million in cash between November 6 and 15, bringing its total holdings to 1,273.
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