Japanese investment firm Metaplanet has announced plans to bolster its Bitcoin holdings, aiming to raise over $62 million (9.5 billion Japanese yen) through a stock acquisition initiative. The move aligns with the firm’s strategy to hedge against the depreciating Japanese yen and capitalize on Bitcoin’s growing prominence as a store of value.
In a statement issued on November 28, Metaplanet revealed its decision to issue a 12th Stock Acquisition Rights to EVO Fund, an investment management entity based in the Cayman Islands. The third-party allotment will consist of 29,000 units, with the majority of the funds earmarked for Bitcoin purchases.
Strategic Shift Amid Market Dynamics
Metaplanet currently holds 1,142 Bitcoin, valued at approximately $109 million. The firm’s renewed push to increase its Bitcoin reserves comes as the cryptocurrency reached an all-time high of $99,645.39 on November 22. Meanwhile, the Japanese yen continues to face significant depreciation, with the USD/JPY exchange rate hitting the 154 mark.
“Given these circumstances, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to proceed with this fundraising initiative,” Metaplanet stated.
If approved under Japan’s Financial Instruments and Exchange Act, the stock acquisition plan will run from December 16, 2023, to June 16, 2025. Should the firm successfully raise the targeted $62 million, it could acquire roughly 652 Bitcoin at the current price of $95,000.
Pivot from the Metaverse to Bitcoin
Metaplanet has also decided to deprioritize its metaverse-related business plans due to a lack of profitability. Instead, it has incorporated Bitcoin acquisition into its corporate treasury strategy, emphasizing a systematic approach that includes leveraging debt and periodic stock issuances.
This marks the firm’s second major fundraising effort for Bitcoin in 2023. In October, Metaplanet completed its 11th Stock Acquisition Rights, raising $66 million, which was similarly allocated to purchasing Bitcoin.
Bitcoin Adoption Grows Among Corporations
Metaplanet’s aggressive Bitcoin strategy mirrors a broader trend among corporations diversifying into cryptocurrency. Recently, video platform Rumble confirmed plans to add Bitcoin to its reserves, following a social media hint from its CEO. Similarly, artificial intelligence firm Genius Group acquired 110 Bitcoin for $10 million, with plans to allocate up to 90% of its reserves to the digital asset.
Tech provider Semler Scientific also expanded its Bitcoin holdings, purchasing 215 Bitcoin for $17.7 million earlier this month, bringing its total to 1,273 Bitcoin.
Also Read: Bitcoin Price Eyes $100K as Whales Scoop Up $1.5B in BTC During Dip – Will $96K Resistance Break?
As more firms adopt Bitcoin as a hedge against fiat currency devaluation, Metaplanet’s initiative underscores the growing confidence in cryptocurrency as a strategic corporate asset. With a stock price up 1,366% year-over-year, Metaplanet appears well-positioned to strengthen its Bitcoin treasury, further solidifying its role in the evolving financial landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
