Bitcoin-btc-japan-japanese-flag-gID_7.png@png” />
In summary
- Metaplanet plans to raise $62 million to buy more Bitcoin and mitigate the impact of the depreciating yen.
- The firm abandoned projects related to the metaverse, focusing on BTC as a corporate treasury strategy.
- The initiative is modeled after MicroStrategy, known for its aggressive Bitcoin accumulation.
Metaplanet, a Japanese investment firm focused on accumulating Bitcoin, announced plans to raise ¥9.5 billion (around $62 million), to increase its BTC holdings.
The company announced its 12th share issue in a Nov. 28 notice. Metaplanet will issue 29,000 share acquisition rights for 100 shares each to Cayman Islands investment management firm EVO Fund.
“The majority of the funds raised on this occasion will be strategically allocated to the purchase of more Bitcoin,” according to the notice. “We have made clear that we intend to use debt and periodic equity issuance to systematically increase our Bitcoin holdings while reducing exposure to a depreciated yen.”
Metaplanet further highlighted that Bitcoin’s “prominence continues to grow” after it nearly reached $100,000 earlier this month. On the other hand, “the Japanese yen continues to depreciate, with the USD/JPY exchange rate returning to the 154 level on the same day, raising continued concerns.”
“Given these circumstances, we recognize the urgent importance of increasing our Bitcoin holdings and have therefore decided to proceed with this fundraising initiative,” the company concluded.
The share acquisition still needs approval from local regulators under Japan’s Financial Instruments and Exchange Law. If approved, the deal will run from December 16, 2024 to June 16, 2025. At the current price of around $98,000 per Bitcoin, the company would acquire more than 638 BTC with the proceeds from the deal.
Metaplanet also said it had decided to shelve its “metaverse-related business plans” as there are “still no prospects for profitability, and has decided to incorporate the buying and holding of Bitcoin as part of our stated corporate treasury strategy.”
The comments follow public disappointment with the results of the metaverse in development by Meta (formerly Facebook) following a $177 billion investment by the company by summer 2022. As Decrypt reported at the time, the charts of the platforms that advertised as leaders in the metaverse look the same, if not worse, than the virtual world of Second Life 20 years ago.
The MicroStrategy Bitcoin Handbook
Metaplanet follows in the footsteps of the American business intelligence firm MicroStrategy, in its acquisition of Bitcoin for its corporate treasury, which under the direction of its president Michael Saylor has followed an aggressive Bitcoin purchasing strategy.
MicroStrategy now owns more than 1% of the 21 million Bitcoin supply, while Saylor has promoted his “Bitcoin playbook” to several companies, including Tesla and recently Microsoft.
However, after seeing renewed interest at the start of the current Cryptocurrency bull run, MicroStrategy shares fell 16% just as Bitcoin approached $100,000. At the time, an analyst explained why his company took a short position in MicroStrategy while maintaining a long position in Bitcoin.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
