Metaplanet, a registered company in Tokyo, now positions itself as Bitcoin
BTC$103,642.13
-Facused Treasury Company has launched a $5.3 billion plan to buy more BTC by issuing 555 million shares through share acquisition rights.
According to Metaplanet, the deal is the largest stock warrant issued in Japan in history, with the first mobile strike warrant with adjusted strike prices adjusted in the market being sold at above the current domestic stock price.
The offering is part of what the company calls the “555 million plan,” a follow-up to the previous “21 million plan,” raising $600 million earlier this year, and Metaplanet has accumulated nearly 9,000 BTC.
The new round is intended to raise enough funds to increase its holdings to over 210,000 BTC by 2027. This is about 1% of Bitcoin supply.
Metaplanet allocates nearly 96% of the capital raised to purchase Bitcoin directly, and is allocated for revenue generating strategies such as bond redemption and sale put options.
The company views BTC as a hedge against Japan’s long-term negative interest rates and weakening of the yen.
To reduce dilution and protect shareholders, issuance takes on a minimum strike price and grants the company the right to temporarily suspend conversions. The shares will be sold to EVO Fund, a Cayman-based fund that backed Metaplanet’s previous funding deal.
Metaplanet’s shares have grown more than 275% so far this year as they follow BTC’s accumulation plans. They closed 1.6% in Friday’s trading session.
Read more: Metaplanet acquires 1,088 bitcoin to bring BTC stash to over $930 million
