Metaplanet Boosts Capital Raise to $1.4B to Increase Bitcoin Holdings

Metaplanet plans to raise $1.4 billion, or about 205 billion Japanese Yen, through its international share sale, which it expanded from 180 million to 385 million shares.

The company priced the new shares at ¥532 each, with payment scheduled for September 16. On that day, funds will transfer to the company, and investors will receive their shares the following day.

Metaplanet Allocates $1.2B to Bitcoin

The company announced that nearly all the capital raised will be used towards buying Bitcoin, with  ¥183.7 billion allocated for purchases and ¥20.4 billion for its Bitcoin-related business.

Metaplanet plans to make Bitcoin its main reserve asset, and at the current price of about $112,000, the company could acquire 12,590 BTC, increasing its Bitcoin holding by 62% from 20,136 to about 32,726 BTC.

In addition, the firm intends to gradually convert its reserves into Bitcoin, with a recently approved $884 million plan to expand its Bitcoin holdings, presenting itself as a ‘Bitcoin-first’ institution.

As Metaplanet moves away from traditional cash by making Bitcoin its main reserve, analysts believe that the large fundraising indicates a strong demand from investors who view Bitcoin as a long-term protection against Japan’s economic problems.

Metaplanet Expands Bitcoin Treasury Amid Stock Volatility

Metaplanet will purchase more Bitcoin in September and October as part of its plan to make Bitcoin the center of its financial strategy, a rare step for a company listed in Japan.His move suggests that more companies are adding digital assets to their reserve.

Following the announcement, Metaplanet’s stock price fluctuated sharply, dropping nearly 10% in one day, and closed at ¥614, down from ¥682, prompting some investors to sell their shares as the value of their existing holdings declined.

Despite the daily drop, the stock price has risen by 64% this year, more than 500% over the past year, and over 800% in the last five years, indicating strong overall performance.