Metaplanet to Issue $1.44 Billion in Shares to Buy Bitcoin
Japanese Bitcoin custodian Metaplanet has announced a $1.44 billion offering of 385 million shares to buy Bitcoin as the company's stock price has fallen.
Metaplanet, the Japanese hotel and real estate group that has transformed itself into a Bitcoin bet, announced Tuesday that it is issuing 385 million new shares to expand the ability to buy the world's first cryptocurrency.
The shares will be sold in an international offering outside Japan at 553 yen ($3.75) each, raising about 212.9 billion yen ($1.44 billion). The offering price represents a 9.9% discount to Tuesday's close of 614 yen.
The payment date is set for September 16, when financial intermediaries and investors will transfer the company's funds. On September 17, the new shares will be credited to investors.
Metaplanet said the proceeds will be used to purchase additional bitcoin between September and October as a hedge against further weakening of the Japanese yen, as well as to expand the company's bitcoin business, which has so far relied on bitcoin options trading.
The move follows a series of bitcoin purchases that have propelled Metaplanet into the ranks of the world's largest public holders of BTC with 20,137 bitcoins on its balance sheet, according to official data.
The Pivot to Digital Assets
While Metaplanet is still a hotel operator, the company has been fascinated with digital assets for over a year. The firm’s Bitcoin strategy was introduced in 2024 as a hedge against inflation, negative interest rates, and the long-term effects of Japan’s government debt. Since then, Metaplanet has repeatedly raised capital to acquire Bitcoin.
Metaplanet shares have risen more than 150% in the past year, fueled by enthusiasm for its Bitcoin strategy. But the Japan-traded stock has fallen nearly 39% in the past month, even as the benchmark Nikkei index has risen 1.7% in the same period.
After an initial burst of enthusiasm, Metaplanet's Bitcoin strategy has begun to hit a rough patch. The slowdown has prompted the company to seek new sources of funding, particularly from investors in other countries, which explains its latest share offering.
Public companies now collectively hold over 1 million Bitcoin, and some have begun to expand their crypto strategies to Ethereum, Solana, and other altcoins.
Source: cryptonews.net
