Japanese investment firm Metaplanet is working to raise over $62 million (9.5 billion Japanese yen) to significantly increase its Bitcoin treasury, which currently stands at 1,142 BTC valued at over $109 million. If successful, the funds could allow the company to purchase approximately 652 additional Bitcoin, furthering its strategy to shift away from the depreciating yen.
Strategic Move to Expand Bitcoin Holdings
In a statement on November 28, Metaplanet announced its plan to issue 29,000 units of its 12th Stock Acquisition Rights to EVO Fund, a Cayman Islands-based investment management firm, through a third-party allotment. The raised funds will primarily be used to purchase Bitcoin as part of the company’s long-term corporate treasury strategy.
“We aim to systematically increase our Bitcoin holdings while minimizing exposure to the depreciating yen,” the firm stated.
Bitcoin’s increasing prominence and Japan’s weakening currency have influenced Metaplanet’s decision. On November 22, Bitcoin hit an all-time high of $99,645.39, while the yen reached a concerning USD/JPY exchange rate of 154.
Timeline and Potential Impact
If the initiative is approved under Japan’s Financial Instruments and Exchange Act, the stock acquisition will run from December 16, 2023, to June 16, 2025. At Bitcoin’s current price of $95,000, Metaplanet could acquire around 652 BTC with the $62 million raised.
This follows a similar move in October when the company completed its 11th Stock Acquisition Rights, raising $66 million (10 billion yen) to purchase Bitcoin.
Shift in Focus from Metaverse to Bitcoin
As part of its strategy, Metaplanet has decided to deprioritize its metaverse-related business ventures, citing a lack of profitability prospects. Instead, the firm is focusing on Bitcoin as a cornerstone of its treasury management plan.
“We recognize the urgent importance of increasing our Bitcoin holdings given current economic conditions,” the company noted.
Rising Trend of Corporate Bitcoin Adoption
Metaplanet’s decision aligns with a growing trend among companies adopting Bitcoin as a treasury asset. Recent examples include:
- Rumble: The YouTube alternative announced plans to purchase Bitcoin on November 25.
- Genius Group: The AI-focused firm bought 110 Bitcoin for $10 million on November 18 and aims to hold up to 90% of its reserves in Bitcoin.
- Semler Scientific: Between November 6 and 15, the tech solutions provider purchased 215 Bitcoin for $17.7 million, increasing its total holdings to 1,273 BTC.
Metaplanet’s Market Performance
Metaplanet’s stock has surged 1,365.63% over the past year, trading at $15.60 (2,345 yen) as of November 28. Despite this, it remains significantly lower than its all-time high of $2,521.76 (379,000 yen) set in February 2013.
By increasing its Bitcoin holdings, Metaplanet aims to capitalize on Bitcoin’s potential for long-term value while mitigating risks tied to a weakening yen.
