Key Points
- Japanese firm Metaplanet has raised 10 billion yen to increase its Bitcoin holdings, following MicroStrategy’s strategy.
- Despite a 5.85% stock drop, Metaplanet has seen 644% year-to-date growth.
Metaplanet’s Bitcoin Strategy
Metaplanet, a Japanese company, has been in the spotlight for its substantial increase in Bitcoin holdings. The company, often dubbed as Asia’s MicroStrategy, has successfully raised 10 billion Yen through its recent stock sale under the 11th series of Stock Acquisition Rights.
According to Bitcoin Treasuries’ latest data, Metaplanet made two significant Bitcoin acquisitions on October 15th and 16th. This move has increased the company’s total Bitcoin balance to 861.4 BTC. The company is following MicroStrategy’s footsteps by using these funds to expand its Bitcoin holdings.
Metaplanet CEO’s Remarks
Somin Gerovich, Metaplanet’s CEO, commented on the company’s strategy. He stated that Metaplanet Inc. has concluded the 11th Stock Acquisition Rights’ exercise period, achieving a 72.8% exercise rate with participation from 13,774 individual shareholders.
He also mentioned that the company approved the transfer of unexercised rights to EVO FUND. This fund has committed to exercising all transferred rights by October 22, 2024. Once the stock acquisition rights issuance process is fully completed, Metaplanet will have successfully raised a total of 10 billion yen.
Impact on Metaplanet’s Share Price
Following the stock sale, Metaplanet’s share price experienced a significant decline, falling by 5.85% to below 1,200 JPY. However, despite this drop, the company remains in a strong position with a remarkable 644% increase in year-to-date gains.
The company’s stock price dipped further by 6.09%, trading at 1,188 JPY, reflecting the market’s immediate reaction to the stock sale. Yet, the company’s overall performance continues to show impressive growth in the long term.
By adopting Bitcoin, Metaplanet aims to navigate Japan’s challenging economic conditions characterized by negative interest rates and quantitative easing. This bold strategy positions the company to hedge against the country’s financial challenges while aligning with the global shift towards digital assets.