Metaplanet eyes more Bitcoin by issuing 21 million shares to raise $745 million

Japanese publicly traded company Metaplanet wants to raise 116 billion yen ($745 million) to buy Bitcoin. In what will be the largest capital raise ever in the country’s history, the company is offering 21 million shares at a 0% discount. 

According to the company’s announcement, the board approved the issuance of the 13th to 17th series of its stock acquisition rights in its January 28 meeting. These rights will give holders the right to buy Metaplanet shares at a predetermined value before they expire.

Following the approved issuance, Metaplanet entered into a Stock Issuance Purchase agreement with EVO FUND, subject to the approval of the securities registration statement by Japan’s securities regulator. Given the size of the planned issuance, Bitcoin Strategist Dylan LeClair noted that this could be the largest equity offering ever in the Asian markets.

Metaplanet targets 21,000 BTC by 2026

The move is not totally surprising as it aligns with Metaplanet‘s long-term goal. The company, dubbed Japan’s MicroStrategy, plans to increase its Bitcoin holdings to 10,000 by the end of this year, with a target for 21,000 BTC by the end of 2026.

The company representative director, Simon Gerovich, noted that the company has seen exponential growth since adopting the Bitcoin standard. The company’s vision is to pioneer Bitcoin in Japan and become one of the largest corporate holders.

He said:

“The market has recognized Metaplanet as Tokyo’s preeminent Bitcoin company, and we are seizing this momentum to solidify our position as a global leader….This plan is our commitment to that future.”

Thus, its recent offering would mark a major milestone for the company’s Bitcoin acquisition strategy, bringing it closer to MicroStrategy regarding a sizable capital raise and purchase. MicroStrategy recently spent $1.1 billion to acquire over 10,000 BTC and is planning to issue  2.5 million Perpetual Strike Preferred Stock (STRK), with the proceeds going to purchase BTC.

Metaplanet highlights the rewards of Bitcoin strategy 

Meanwhile, the company also highlighted its milestones since adopting the Bitcoin standard. Since it started buying BTC in May 2024, it now holds 1,761 BTC, making it one of the largest public holders of the flagship asset.

Its stock surged more than 2,600% in 2024, with shareholders surpassing 50,000 and the market cap increasing by 7,000%. The company is also sitting on positive returns, with a record 309.82% Bitcoin yield in Q4 of 2024.

Bitcoin yield is a metric first used by MicroStrategy, and it measures the percentage change in the ratio of a company’s Bitcoin holdings and its fully diluted shares outstanding.

Meanwhile, Metaplanet stock is already up 3% today on the back of this latest news, according to Google Finance data. It is now trading at 4,160 Japanese yen, a 16% increase year to date. This is particularly impressive given that the company’s last Bitcoin acquisition was in December when it spent $60.6 million on 619.7 BTC.

Bitcoin has fluctuated since then, falling below $90,000 and rising above $109,000 during that period. However, Metaplanet’s recent announcement follows Bitcoin’s resurgence to $102,000 after falling below $100,000 on January 27.

Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now