Metaplanet plans $62M raise to boost Bitcoin holdings

Japanese investment firm Metaplanet has announced plans to raise $62 million (9.5 billion Japanese Yen) through a stock acquisition initiative to significantly increase its Bitcoin (CRYPTO:BTC) holdings.

The company currently holds 1,142 Bitcoin, valued at over $109 million, and aims to acquire an additional 652 Bitcoin at the current price of $95,000 per coin.

In a November 28 statement, Metaplanet revealed its intention to issue 29,000 Stock Acquisition Rights to EVO Fund, an investment management firm in the Cayman Islands.

The funds raised will primarily be allocated toward Bitcoin purchases, underscoring the firm’s strategy to hedge against the depreciating yen.

“We have made it clear that we intend to utilise debt and periodic stock issuance to systematically increase our Bitcoin holdings while reducing exposure to a depreciating yen,” the statement read.

The initiative is pending approval under Japan’s Financial Instruments and Exchange Act and is scheduled to run from December 16, 2024, to June 16, 2025.

Metaplanet’s decision comes as Bitcoin reached a new all-time high of $99,645.39 on November 22, while the yen’s value continues to decline against the U.S. dollar.

“Given these circumstances, we recognise the urgent importance of increasing our Bitcoin holdings,” the firm stated, acknowledging the economic pressures posed by currency depreciation.

Metaplanet has shifted its focus from metaverse-related ventures due to profitability concerns, incorporating Bitcoin as a core part of its corporate treasury strategy.

In October, the firm raised $66 million through its 11th Stock Acquisition Rights, which was also used to purchase Bitcoin.

Other companies have also embraced Bitcoin for their reserves.

Rumble, Genius Group, and Semler Scientific recently announced Bitcoin acquisitions, signaling a broader trend among firms adopting Bitcoin as a strategic asset.

At the time of reporting, the Bitcoin price was $96,300.06.