If successful in raising capital, Metaplanet could purchase an additional 652 Bitcoin at a cost of $62 million.
Japanese investment company Metaplanet aims to raise over $62 million (9.5 billion Japanese Yen) through a stock issuance plan to purchase additional Bitcoin for its reserve, currently holding 1,142 Bitcoin worth over $109 million.
In a statement on November 28, Metaplanet said it will issue the 12th Stock Acquisition Rights to EVO Fund, an investment management company based in the Cayman Islands, through an allocation to a third party with a total of 29,000 units.
"The majority of the funds raised this time will be allocated strategically to purchase additional Bitcoin," Metaplanet stated.
"We have clarified our intention to use debt and periodic stock issuances to systematically increase our Bitcoin holdings, while minimizing risks from the depreciating Yen."
Metaplanet also noted the increasing importance of Bitcoin, especially after it reached a historic high of $99,645.39 on November 22.
"Meanwhile, the Japanese Yen continues to depreciate, with the USD/JPY rate returning to the 154 level on the same day, causing persistent concerns," the company said.
"In light of this, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to undertake this capital raising initiative."
If approved under the Financial Instruments and Exchange Act of Japan, the stock issuance plan will run from December 16 to June 16, 2025.
If Metaplanet raises the full $62 million, the company could purchase an additional 652 Bitcoin at the current price of $95,000 per BTC.
Meanwhile, the company said it is putting its metaverse-related business plans on hold due to "lack of profit prospects" and has decided to make the acquisition and holding of Bitcoin a part of its treasury strategy.
In October, Metaplanet completed its 11th stock issuance plan, raising a total of $66 million (10 billion Japanese Yen), also allocated to purchase Bitcoin.
The company first announced its Bitcoin acquisition plan in April. Metaplanet's stock price has increased by 1,365.63% over the past year and is currently around $15.60 (2,345 Japanese Yen), according to Google Finance.
However, the stock price is still lower than its all-time high of $2,521.76 (379,000 Japanese Yen) set on February 22, 2013.
An increasing list of other companies have also joined the trend of adding Bitcoin to their balance sheets this year:
- YouTube alternative platform Rumble confirmed plans to purchase Bitcoin on November 25, just days after their CEO hinted at the intention on social media.
- Artificial intelligence company Genius Group bought 110 Bitcoin worth $10 million on November 18, with plans to have 90% of its reserves in Bitcoin going forward.
- Technology solutions provider Semler Scientific said it bought an additional 215 Bitcoin worth $17.7 million in cash from November 6 to 15, bringing its total Bitcoin holdings to 1,273 BTC.
Keep following Coin Moi for the latest updates in the market!
The article Metaplanet raises $62 million to acquire more Bitcoin first appeared on CoinMoi.
