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Key Takeaways:
- Metaplanet aims to raise $3.7B to accelerate its Bitcoin accumulation.
- Preferred shares offer long-term funding with minimal shareholder dilution.
- The firm now holds more BTC than Tesla and Galaxy Digital.
Japanese investment firm Metaplanet has unveiled plans to raise ¥555 billion ($3.7 billion) through the issuance of perpetual preferred shares, pending shareholder approval at an upcoming Extraordinary General Meeting (EGM). The move follows Metaplanet’s recent purchase of 780 BTC worth $92.5 million, bringing its total Bitcoin holdings to 17,132 BTC, currently valued at around $1.73 billion.
This strategic fundraising initiative positions Metaplanet to pursue its longer-term ambition of amassing 210,000 BTC by 2027—a bold goal that underscores its deepening alignment with the Bitcoin ethos.
Perpetual Preferred Shares: A Strategic Capital Move
The proposed offering includes two classes of perpetual preferred stock: Class A (non-convertible) and Class B (convertible). Unlike traditional equity or debt, these preferred shares carry fixed dividends and no maturity, offering a stable, long-term capital solution that minimizes dilution for existing shareholders.
By leveraging this funding mechanism, Metaplanet can accelerate its Bitcoin accumulation without draining operational cash flows, and attract fixed-income investors seeking yield rather than equity upside.
Market Reaction Mixed as Stock Dips
Despite the bold announcement, Metaplanet’s stock price dipped 7.65% to 1,063 yen on the news. The company’s shares are down 10% over the past week and 33% over the past month. Still, long-term investors have seen a significant upside, with stock gaining 115% in the past six months.
Also Read: Metaplanet Adds 780 BTC, Hits 17,132 Bitcoin Total
Industry watchers remain intrigued, as Metaplanet’s Bitcoin holdings have already outpaced those of Tesla and Galaxy Digital, further cementing its status as one of the top public BTC holders globally.
Metaplanet’s proposed $3.7 billion funding plan marks a pivotal step in its Bitcoin-first strategy, offering long-term capital to fuel future BTC purchases. While short-term stock fluctuations reflect market caution, the company’s commitment to becoming a dominant Bitcoin holder remains clear.
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
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
