Japanese company Metaplanet is making a bold play for Bitcoin. They plan to issue a lot of new shares in international markets. This move aims to secure a massive amount of cash to buy even more Bitcoin. The company’s shares have dipped, much like the broader cryptocurrency market. Bitcoin itself has recently dropped about 10% from its peak price this month, which was around $124,000.
Despite this market dip, Metaplanet is pushing forward with its goal to pile up Bitcoin. The Tokyo Stock Exchange-listed firm announced a plan to release up to 555 million new shares. They hope to raise about 130.3 billion yen, which is roughly $880 million U.S. dollars. Most of this money will go straight into buying more Bitcoin. Some funds will also support their Bitcoin income-generating business, like options trading.
Metaplanet shared on its official X account that shareholders need to approve this international offering. They will vote at a special meeting on September 1. The company explained that this is part of a plan to change its rules and allow for more shares to be issued.
Metaplanet sees Bitcoin as a smart choice right now. They noted that government bonds, usually seen as safe, are losing value. Interest rates are going up, and gold is gaining as a hedge against rising prices and currency risks. In this environment, Bitcoin stands out as a “strategic alternative.” The company believes Bitcoin can act as a long-term store of value.
It’s important to know that this share offering isn’t a sale of securities in Japan or the United States. It won’t be registered under the U.S. Securities Act of 1933, the company stated.
Metaplanet’s Financial Updates
Metaplanet says this big move shows a shift towards an economy built on information technology. They believe the current money system is at a turning point. The company argues that “Bitcoin offers scarcity, transparency, and reliability in transactions without needing middlemen.”
This announcement follows several other financial updates from the company. Between August 14 and 26, investors used their rights to buy 275,000 shares from the 20th series. This resulted in 27.5 million new shares being issued. These shares were priced between 966 and 834 yen. This brought the total number of shares out in the market to 739.7 million.
Also, Metaplanet paid back 5.25 billion yen of its 19th series ordinary bonds ahead of time. These bonds were due in December. The company will also temporarily stop the process for buying shares from the 20th, 21st, and 22nd series. This pause will last from September 3 to September 30. There are still 360,000 units pending in the 20th series and 1.85 million in each of the other two. The company noted it can restart or change this suspension if needed.
Aiming for 30,000 BTC by 2025
Metaplanet started as a hotel operator. But since April 2024, it has been actively buying Bitcoin. The company is following a strategy similar to MicroStrategy. This means raising money through new shares and debt to invest in the leading cryptocurrency. The goal is to boost its value and make profits for shareholders.
Metaplanet’s most recent purchase, reported earlier this week, was for $11.7 million. This pushed its total Bitcoin stash to 18,991 BTC. This makes Metaplanet the biggest corporate holder of Bitcoin outside the United States. The company has already reached more than 60% of its goal to own 30,000 BTC by the end of 2025. They even hope to reach 200,000 BTC by 2027.
The plan is not just to grow the net value of its Bitcoin holdings. Metaplanet also wants to build stronger relationships with big global investors. This comes at a time of increasing global political risks, changes in trade rules, and worries about accumulated debt.
This latest move by Metaplanet comes as its stock has been shaky. This matches a wider drop in the crypto market that saw Bitcoin fall below $110,000 this week. However, the news about the share offering sent Metaplanet’s stock up 5.7% on Wednesday. It closed at 890 yen on the Japanese stock exchange, showing market optimism as prices started to recover.
At the time of this writing, Bitcoin was trading around $111,300. This was up 1.5% in the last 24 hours. It was still 10.4% below its all-time high of $124,000, which it hit in mid-August, according to CoinGecko.