Metaplanet Completes ¥10B Stock Acquisition, Plans Further Bitcoin Purchases

Metaplanet has successfully concluded its 11th stock acquisition rights sale, raising 10 billion yen, approximately $66.2 million, from investors. 

The Japanese investment firm, which has embraced Bitcoin as its primary reserve asset, plans to use the funds to increase its holdings as part of its long-term strategy.

Successful fundraising and investor confidence

The stock acquisition rights sale, announced in August, attracted interest from 13,774 investors, including major institutional players such as BlackRock. All stock acquisition rights were exercised, signaling strong investor confidence in Metaplanet’s strategy and Bitcoin’s potential as a hedge against inflation and economic instability. 

The company’s leadership, notably CEO Simon Gerovich, expressed gratitude to shareholders and reiterated Metaplanet’s goal of becoming a leading holder of Bitcoin. In addition to completing the stock sale, the firm announced the early redemption of its 2nd series ordinary bonds, further strengthening its financial position. After accounting for Treasury shares, the company now holds 18,099,116 units of stock acquisition rights.

Bitcoin purchases and strategy

Since May 2024, Metaplanet has steadily increased its Bitcoin holdings in response to Japan’s challenging economic environment and the yen’s depreciation. The company’s most recent Bitcoin purchase, made in mid-October, involved 107 BTC, bringing its total balance to 861.4 BTC as of October 17, according to data from Bitcoin Treasuries. The firm made significant purchases in October, including 132 BTC in a single transaction.

Metaplanet has rapidly increased the ranks of Bitcoin holders, positioning itself among the top three holders in the Asia-Pacific region. The company is following a model similar to that of Microstrategy, the largest corporate Bitcoin holder globally, which has also been on a buying spree. Gerovich has publicly praised Microstrategy’s CEO, Michael Saylor, for leading the way in corporate Bitcoin adoption.

Bitcoin options trade generates additional income

In addition to direct Bitcoin purchases, Metaplanet has also profited from Bitcoin-related financial instruments. On October 3, the company earned nearly 24 BTC in premium income by selling put options to Singaporean digital asset trading firm QCP Capital. The two companies traded 223 Bitcoin put option contracts, which are set to expire in late December, at a strike price of $62,000 per coin.

This transaction resulted in a nominal yield of 10.75%, with an annual yield reaching 45.63%. The premium income further bolsters Metaplanet’s Bitcoin strategy by generating additional revenue while maintaining its focus on expanding its Bitcoin reserves. Metaplanet’s strategic moves underscore its commitment to Bitcoin as a core asset, positioning the firm to navigate economic uncertainties while building a solid position in the digital currency.

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