YEREVAN (CoinChapter.com) — Japanese investment firm Metaplanet revealed its plan to raise $62 million (9.5 billion yen) to expand its Bitcoin holdings. The company’s current Bitcoin holdings stand at 1,142 BTC, valued at more than $109 million. This announcement came via a statement on Nov. 28.
Metaplanet $62M Bitcoin Fundraising Announcement. Source: Metaplanet Inc. on X
The company plans to issue its 12th Stock Acquisition Rights to EVO Fund, an investment firm based in the Cayman Islands. This third-party allotment will consist of 29,000 units, with the majority of funds earmarked for purchasing Bitcoin. The firm aims to strengthen its Bitcoin reserves to reduce exposure to the depreciating yen.
“Most of the funds raised will be strategically allocated for the purchase of additional Bitcoin,”
the company stated.
Bitcoin Demand Increases as Yen Weakens
Bitcoin’s rising prominence was noted by Metaplanet, especially after the cryptocurrency reached a record high of $99,645.39 on Nov. 22. Meanwhile, the USD/JPY exchange rate hit 154, highlighting continued depreciation of the Japanese yen.
Metaplanet emphasized the need to increase its Bitcoin holdings in light of these conditions. The proposed fundraising is expected to be conducted under Japan’s Financial Instruments and Exchange Act, with the stock acquisition rights valid from Dec. 16, 2023, to June 16, 2025.
At the current Bitcoin price of approximately $97,000, the company could acquire an additional 652 Bitcoin with the funds raised.
Bitcoin Price Chart Near $97K. Source: TradingView Metaplanet’s Metaverse Strategy Halted, Bitcoin Treasury Strategy Prioritized
The company has also decided to postpone its metaverse-related business activities, citing the lack of profitability in this sector. Instead, Metaplanet is focusing on a corporate treasury strategy centered on Bitcoin acquisition.
In October, the company completed its 11th Stock Acquisition Rights, raising $66 million, which it also allocated for Bitcoin purchases. Since April, Metaplanet has actively pursued this strategy, seeing Bitcoin as a hedge against the yen’s declining value.
Metaplanet’s Stock Performance
Metaplanet’s stock price has increased 1,365% over the past year, currently trading at $15.60. However, it remains far below its all-time high of $2,521.76, recorded on Feb. 22, 2013.
Metaplanet Stock Surge: 1,365% Growth in 2024. Source: Google Finance Other Companies Join Bitcoin Investment Trend
Notably, Metaplanet’s decision aligns with moves by other companies adding Bitcoin to their balance sheets. On Nov. 25, Rumble, a YouTube alternative, confirmed plans to purchase Bitcoin.
Additionally, Genius Group, an artificial intelligence company, invested $10 million to acquire 110 Bitcoin on Nov. 18, with a goal to hold up to 90% of its reserves in Bitcoin. Between Nov. 6 and 15, Semler Scientific purchased 215 Bitcoin for $17.7 million, increasing its total Bitcoin holdings to 1,273 BTC.
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