Key Points
- Metaplanet aims to raise $62 million through its upcoming series of stock acquisition rights to EVO Fund.
- The company plans to use the raised funds to increase its Bitcoin holdings.
Metaplanet, a Japanese investment firm, is planning to raise $62 million from its forthcoming series of stock acquisition rights. The funds will be used to purchase more Bitcoin for its treasury management.
Stock Acquisition Rights to EVO FUND
The firm announced its plans to issue its 12th Stock Acquisition Rights to EVO FUND, an investment management firm based in the Cayman Islands, via a third-party allotment starting Dec. 16, 2024.
The company will issue a total of 29,000 units, with each unit entitling EVO FUND to buy 100 common shares. Each subscription right is priced at 614 yen, resulting in a total issuance price of 17,806,000 yen.
If EVO FUND opts to buy all the units offered by Metaplanet, they will acquire 2,900,000 common shares with a lower exercise price limit of 1,500 yen. As a result, Metaplanet could gain over 9.5 billion yen ($62 million) from their 12th Stock Acquisition Rights sale to EVO FUND. However, the transaction is subject to approval under Japan’s Financial Instruments and Exchange Act.
Investing in Bitcoin
Metaplanet has stated that it will use most of the raised funds to buy more Bitcoin, in line with its strategic corporate treasury strategy to expand its Bitcoin position. The company is prioritizing a Bitcoin-first, Bitcoin-only approach to treasury management.
The firm has made it clear that it plans to use debt and periodic stock issuance to systematically increase its Bitcoin holdings while reducing exposure to a depreciating yen.
In October, Metaplanet completed its 11th series of stock acquisition rights, raising a total of 10 billion yen ($66 million). The majority of these funds were also allocated to purchasing Bitcoin.
Often compared to “Asia’s MicroStrategy”, Metaplanet has accumulated the largest Bitcoin trove in Japan, with 1,142 BTC, worth $109.36 million at current market prices.
Recently, the company announced its addition to the Amplify Transformational Data Sharing ETF or BLOK, a global index that invests in leading blockchain companies. Simon Gerovich, the CEO of Metaplanet, stated that the company’s inclusion in the ETF signifies its leadership as “Japan’s leading Bitcoin Treasury Company”.