Metaplanet, the Tokyo-listed firm now positioning itself as a bitcoin BTC-focused treasury company, has launched a $5.3 billion plan to buy more BTC by issuing 555 million shares through stock acquisition rights.
The deal, Metaplanet says, marks the largest-ever issuance of stock warrants in Japan and represents the first instance of moving strike warrants, where the exercise price adjusts with the market, being sold at or above current share prices in the country.
This offering forms part of what the company is calling its “555 Million Plan,” which follows an earlier initiative known as the “21 Million Plan.” The previous plan successfully raised $600 million earlier this year, facilitating Metaplanet’s acquisition of nearly 9,000 BTC and positioning it as a significant player in the cryptocurrency market.
The goal of the new round is to raise sufficient funds to elevate the firm’s bitcoin holdings to over 210,000 BTC by 2027, approximating 1% of the total bitcoin supply.
Metaplanet plans to allocate nearly 96% of the capital raised directly to bitcoin purchases, with smaller portions dedicated to bond redemptions and income-generating strategies, such as selling put options. The company regards BTC as a strategic hedge against Japan’s prolonged period of negative interest rates and a weakening yen.
To mitigate shareholder dilution and protect their interests, the issuance includes a minimum exercise price and grants the company the authority to temporarily suspend conversions. Shares will be sold to EVO FUND, a Cayman-based fund that has previously supported Metaplanet’s financing initiatives.
Thus far in 2023, Metaplanet’s shares have skyrocketed by more than 275% as the firm continues its bitcoin accumulation strategy. However, they saw a 1.6% decline in Friday’s trading session.
Read more: Metaplanet Acquires 1,088 Bitcoin to Bring BTC Stash to Over $930M
