Originally published on: August 06, 2024
Metaplanet Inc has unveiled a bold move by offering its 11th series of stock acquisition rights to all common shareholders during a recent board of directors meeting. This decision aims to raise approximately 10 billion Japanese yen, equivalent to roughly $69.13 million, with a significant portion of 8.5 billion yen, around $58.76 million, earmarked for investment in BitcoinBTC$63,003.
As of September 5, all common shareholders will be entitled to the stock acquisition rights, with the allotment set to take effect from September 6 onwards. The company’s strategic choice to heavily invest in BTC stems from the belief in the long-term value appreciation of the assets and the safeguard it provides against currency devaluation.
The Japanese stock market recently experienced a substantial one-day decline reminiscent of the events in 1987, triggered by the Bank of Japan’s decision to raise rates on short-term government bonds on July 31 – a move from 0% to 0.25%. This shift led to a significant sell-off of cryptocurrencies, including BTC and EtherETH$2,470.05, witnessing notable price drops of approximately 18% and 26%, respectively.
In a similar vein, prior to this latest development, Metaplanet had already dipped its toes into the realm of Bitcoin. In early July, the investment and consulting firm acquired $2.5 million worth of BTC with 400 million yen, accumulating a total of 42.5 BTC. This purchase added to the company’s existing BTC holdings, totaling 203.7 BTC with an average purchase price of roughly 10 million yen, equivalent to $62,000 per BTC.
Metaplanet’s foray into Bitcoin dates back to April when it first began accumulating the digital asset as part of its treasury holdings, starting with a $6.5 million investment. Presenting at the Bitcoin Conference in Nashville in late July, Metaplanet executives expressed admiration for MicroStrategy’s Bitcoin investment strategy.
Simon Gerovich, the CEO of Metaplanet, highlighted how the firm’s pivot towards BTC had prevented it from becoming another “zombie company.” Embracing Bitcoin as the supreme monetary asset, Gerovich emphasized the asset’s potential to bolster the Japanese investment company’s treasury reserves.
By delving into the Bitcoin market, Metaplanet is leveraging the resilience and potential for growth that come with digital assets, signaling a strategic shift in its investment approach towards the dynamic world of cryptocurrencies.