Joining a slew of public companies that are placing significant bets on the cryptocurrency’s long-term development, Metaplanet is raising $62 million to expand its Bitcoin treasury.
Metaplanet, a Japanese investment company, has disclosed its intention to raise $62 million in order to augment its Bitcoin holdings. By issuing stock acquisition rights to EVO Fund, the company will be able to purchase additional Bitcoin as part of its long-term strategy, thereby securing the funds. This action underscores Metaplanet’s dedication to a “Bitcoin-first” strategy, which emphasizes the use of the cryptocurrency to manage its treasury and decreases its dependence on the weakening yen.
Metaplanet will issue 29,000 units of stock acquisition rights at a price of 614 yen per unit, totaling 17.8 million yen, commencing December 16, 2024. This is the 12-th stock issuance series for the company this year, following the 11th issuance in October, which raised $66 million. Additionally, Bitcoin acquisitions garnered a substantial portion of that funding. In 2024, the company’s stock has experienced a significant increase of over 1,000%, which is indicative of the confidence that investors have in its strategy.
Metaplanet is not the sole entity that has increased its Bitcoin reserves. The cryptocurrency is becoming a more popular investment option for publicly traded companies worldwide. For example, in November, MicroStrategy made its third acquisition of Bitcoin, which amounted to $5.4 billion. The company has maintained its status as the largest institutional Bitcoin bearer by investing more than $16 billion in Bitcoin this year. In 2024, its stock price has increased by 450%, establishing it as one of the top 100 U.S. companies.
In the same vein, Marathon Digital has raised $1 billion through a convertible senior notes offering, with the majority of the funds allocated to Bitcoin acquisitions. Recently, SOS Limited acquired $50 million of Bitcoin in China, which resulted in a 100% increase in its stock price. These actions indicate a growing institutional interest in Bitcoin as a hedge against inflation and a store of value.
Bitcoin’s increasing value serves to reinforce market optimism. Firms such as Metaplanet and MicroStrategy remained optimistic about its potential, despite the fact that it reached $99,000 this year. Pantera Capital anticipates that Bitcoin will reach $740,000 by 2028, which will further enhance the industry’s optimistic outlook.
Metaplanet’s proactive measures this year are indicative of its commitment to gradually increasing its Bitcoin holdings. In order to implement its strategy, the organization has strategically employed stock issuance and debt to fortify its market position. The trend of public firms continuing to invest significantly in Bitcoin indicates a growing conviction in the cryptocurrency’s long-term value. The bold approach of Metaplanet is indicative of a more general institutional shift toward the acceptance of Bitcoin as a critical financial asset.
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