TLDR
- Metaplanet Inc, a Japanese investment and consulting firm, plans to raise about $70 million through a stock rights offering.
- The company intends to use $58.76 million of the raised funds to invest in Bitcoin, expanding its cryptocurrency holdings.
- Currently holding around 246 Bitcoins worth approximately $13.4 million, Metaplanet sees Bitcoin as a long-term investment.
- Following a strategy similar to MicroStrategy, Metaplanet views Bitcoin as a hedge against currency depreciation.
Metaplanet Inc, a Japanese investment and consulting firm, has announced plans to raise approximately 10 billion Japanese yen (about $70 million) through a stock rights offering.
The company intends to use 8.5 billion yen ($58.76 million) of the raised funds to invest in Bitcoin, significantly expanding its cryptocurrency holdings.
The decision was made during a recent board of directors meeting, where Metaplanet approved a gratis allotment of its 11th series of stock acquisition rights to all common shareholders.
Shareholders of record as of September 5 will receive one stock acquisition right per common share, allowing them to acquire Metaplanet common stock at an exercise price of 555 yen (about $4) from September 6 to October 15.
Currently, Metaplanet holds about 246 Bitcoins, valued at approximately $13.4 million. The planned investment would substantially increase the company’s Bitcoin treasury, as CEO Simon Gerovich explained that Bitcoin is seen as the apex monetary asset.
Adopting a strategy similar to MicroStrategy, Metaplanet views Bitcoin as a valuable long-term investment and a hedge against currency depreciation.
Two main factors drive Metaplanet’s decision to invest heavily in Bitcoin: long-term appreciation potential in the asset and its role as a hedge against currency depreciation, especially considering recent market volatility.
The recent significant drop in the Japanese stock market following an increase in short-term government bond rates by the Bank of Japan has underscored the importance of diversifying into alternative assets like Bitcoin.
Despite recent market volatility, Metaplanet remains confident in Bitcoin’s long-term potential, expecting an increase in Bitcoin prices to strengthen its balance sheet and enhance asset value.
Metaplanet is also exploring ways to generate additional income from its Bitcoin holdings, such as selling covered calls on the digital assets and potentially transforming its hotel business to cater to Bitcoin enthusiasts and businesses.
This shift towards Bitcoin comes as Metaplanet strategically exits most of its hotel business, which has been facing declining revenue and recurring losses over recent periods.