Metaplanet plans to raise ¥9.5 billion to fund Bitcoin acquisitions, adjusting exercise prices based on market trends.
EVO FUND can acquire 2.9M shares, with exercise prices adjusted daily to reflect market conditions, ensuring flexibility.
Raised funds will focus on strengthening Metaplanet’s Bitcoin holdings to protect against yen depreciation and market volatility.
Metaplanet Inc. has unveiled plans to issue its 12th Series Stock Acquisition Rights to raise ¥9.5 billion ($62 million). The issuance, set for December 16, 2024, aims to fund accelerated Bitcoin acquisition amidst the yen’s continued depreciation.
EVO FUND is the sole allottee, authorized to acquire 2.9 million shares under this third-party allocation. The minimum exercise price is set at ¥1,500 per share, with no upper limit. Adjustments to the exercise price will begin in January 2025, reflecting market activity.
https://twitter.com/Metaplanet_JP/status/1862025292946031045 Market-Driven Pricing for Dynamic Capital Growth
The initial exercise price of ¥3,288 per share, set at 150% of the prior day’s closing price, is pivotal. Starting January 7, 2025, the price will be recalibrated daily based on an 11-day VWAP. A 3% discount ensures alignment with market trends, bolstering transparency and liquidity.
Importantly, no adjustment will occur if VWAP data is unavailable during the pricing period. The exercise period spans December 17, 2024, to June 16, 2025, allowing flexibility for strategic fund allocation. Additionally, restrictions cap EVO FUND’s holdings at 10% of Metaplanet’s listed shares to safeguard shareholder interests. Any transfer of rights requires the recipient to adhere to all obligations, ensuring regulatory compliance.
Focus on Bitcoin to Strengthen Treasury Management
The raised funds will drive Metaplanet’s Bitcoin-centric strategy, addressing currency risks and optimizing its treasury. Notably, the USD/JPY spiked to 154, highlighting the yen's weaknesses, while Bitcoin recently reached an all-time high. The business's choice to give Bitcoin top priority is consistent with its objective of reducing these risks.
Moreover, this innovative fundraising structure facilitates capital inflow, balancing market-driven pricing with regulatory compliance. Proceeds from the issuance will depend on exercise volumes and price adjustments, demonstrating adaptability in volatile markets.
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