Metaplanet Completes ¥10 Billion Stock Rights Exercise for Bitcoin Acquisition

TLDR:

• Metaplanet raised ¥10 billion ($66.2M) through stock acquisition rights to purchase Bitcoin
• 13,774 shareholders participated with a 72.8% exercise rate
• Currently holds 861.387 BTC bought at average price of ¥9.3M
• Unexercised rights will be transferred to EVO FUND
• Latest purchase was 107 BTC on October 15, 2024

Metaplanet Inc., a Tokyo-based hotel asset management company listed on the Tokyo Stock Exchange (3350), has successfully completed its 11th stock acquisition rights exercise, raising ¥10 billion ($66.2 million) to expand its Bitcoin holdings.

The company achieved a 72.8% exercise rate with participation from 13,774 shareholders, including major institutional investors like BlackRock, the world’s largest asset manager with $11 trillion in assets under management.

*Metaplanet Announces Results of Stock Acquisition Rights Exercise* pic.twitter.com/MquO6JFNEX

— Metaplanet Inc. (@Metaplanet_JP) October 22, 2024

The stock sale, initially announced on August 6, 2024, marks a pivotal moment in Metaplanet’s cryptocurrency strategy. According to company documents, the remaining unexercised rights will be transferred to EVO FUND for final allocation, with complete results expected in the coming weeks.

CEO Simon Gerovich addressed shareholders following the announcement: “We would like to thank all shareholders for their invaluable support and contribution, which strengthens Metaplanet’s mission of becoming a leading Bitcoin treasury company.”

The company’s current Bitcoin holdings stand at 861.387 BTC, acquired at an average price of ¥9,313,428 per Bitcoin. These holdings, valued at over ¥8 billion, represent a significant portion of the company’s treasury strategy. Metaplanet’s most recent acquisition occurred on October 15, 2024, when it purchased 107 BTC for ¥1 billion ($6.7 million).

Since April 2024, Metaplanet has implemented a systematic Bitcoin acquisition strategy, typically purchasing ¥1 billion worth of Bitcoin in each round. This approach mirrors the strategy employed by MicroStrategy Inc., the U.S.-based business intelligence firm known for its substantial Bitcoin holdings.

The announcement coincided with notable Bitcoin price movements in Asian trading hours, where the cryptocurrency reached $69,000 before declining to $67,500. This market activity underscores the volatile nature of the asset class Metaplanet is investing in.

BlackRock’s participation in the stock acquisition rights exercise reflects growing institutional interest in companies with significant Bitcoin exposure. The investment giant’s involvement adds credibility to Metaplanet’s strategy and suggests broader institutional acceptance of Bitcoin-focused treasury management.

The newly raised capital positions Metaplanet to potentially double its current Bitcoin holdings. The company has indicated that it will continue its measured approach to Bitcoin acquisition, maintaining its strategy of regular purchases rather than large single investments.

The success of this financing round comes as Metaplanet seeks to protect its treasury against the devaluation of the Japanese yen. The company has recorded profits from its Bitcoin investments since beginning its accumulation strategy earlier in 2024.

Looking at the technical details of the stock sale, the ¥10.08 billion Gratis Allotment of Stock Acquisition Rights was structured to allow existing shareholders to participate in the company’s expansion plans. The high participation rate suggests strong shareholder confidence in Metaplanet’s Bitcoin-focused strategy.

Financial records show that each of Metaplanet’s Bitcoin purchases since April 2024 has been carefully documented and disclosed to shareholders, maintaining transparency in its cryptocurrency operations. The company reports its Bitcoin holdings in both Japanese yen and the number of Bitcoin tokens, providing clear metrics for shareholders to track the strategy’s implementation.

Current market conditions, including Bitcoin’s recent price movements and broader institutional adoption, have created a favorable environment for Metaplanet’s expansion plans.

The company’s timing aligns with increased institutional interest in Bitcoin, particularly as discussions continue about potential spot Bitcoin ETF approvals in major markets.