Japan's MicroStrategy Metaplanet to raise $1.4 billion to buy more bitcoin

Japan's MicroStrategy Metaplanet to raise $1.4 billion to buy more bitcoin

Japanese hotelier-turned-Bitcoin investment firm Metaplanet has announced plans to raise up to $1.4 billion to significantly expand its Bitcoin holdings. The company, advised by Eric Trump, has secured shareholder approval to issue new shares and preferred stock worth up to 685.3 billion yen ($4.6 billion), with the majority of the funds earmarked for purchasing more Bitcoin .

Shareholders backed a proposal to sell 550 million new shares overseas, expected to raise around 130.3 billion yen ($884 million), and approved the issuance of up to 555 million preferred shares, which could generate as much as 555 billion yen ($3.7–3.8 billion). The preferred shares come with annual dividends of up to 6% and are capped at 25% of the value of Metaplanet’s Bitcoin holdings to avoid diluting existing common stockholders .

Metaplanet, formerly known as Red Planet Japan, has pivoted sharply from its roots in the hospitality sector to become a Bitcoin-focused treasury company. Inspired by U.S.-based MicroStrategy, which has become the largest corporate Bitcoin holder, Metaplanet has accumulated roughly 20,000 BTC—valued at more than $2 billion—since shifting its strategy. The new fundraising efforts are part of its plan to expand its holdings to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027, roughly 1% of Bitcoin’s total capped supply .

The company’s aggressive pivot has placed it among the largest corporate holders of Bitcoin, reflecting a growing trend of non-financial firms embracing digital assets as a store of value. By leveraging equity and preferred stock to fund its purchases, Metaplanet is effectively betting its corporate future on Bitcoin’s long-term performance .

Metaplanet has already made significant strides in its Bitcoin accumulation strategy. In August, the company announced the purchase of an additional 136 Bitcoin, worth approximately $15.2 million, bringing its total holdings to 20,136 BTC, valued at more than $2 billion at current market prices .

The move comes at a time when institutional interest in Bitcoin has been growing steadily, driven by rising acceptance of the asset class and broader integration into financial markets. Metaplanet’s announcement reinforces the narrative that Bitcoin is increasingly being viewed not just as a speculative asset, but as a strategic reserve currency for corporations seeking to hedge against inflation, currency devaluation, and macroeconomic uncertainty .

However, Metaplanet faces challenges. Its reliance on equity and warrant financing has drawn scrutiny, with analysts warning that a decline in its share price could undermine its ability to raise new capital and dilute shareholder value. The company’s shares have already experienced significant volatility in recent months, highlighting the risks of a corporate strategy so heavily tied to Bitcoin’s performance .

The issuance of preferred shares introduces additional complexities. The capped value structure is designed as a defensive mechanism, but analysts note that it could still weigh on investor sentiment if Bitcoin’s price fluctuates sharply. Any prolonged downturn in the crypto market would expose Metaplanet to significant balance sheet risks .

Metaplanet’s ambitious goal of amassing more than 200,000 BTC within the next three years places it firmly in the ranks of the most aggressive corporate Bitcoin adopters. By comparison, MicroStrategy, which pioneered the strategy, has acquired more than 200,000 BTC over a five-year period through a mix of debt and equity financing .

For now, Metaplanet is riding a wave of investor enthusiasm in Asia’s crypto markets, but its long-term success will depend on its ability to sustain fundraising momentum while navigating the inherent volatility of Bitcoin. If successful, the firm could cement its status as one of the largest corporate players in the Bitcoin ecosystem, but if the strategy falters, it risks becoming a cautionary tale of overexposure to digital assets .

References:
https://financefeeds.com/metaplanet-seeks-3-8-billion-to-expand-bitcoin-holdings/
https://financefeeds.com/metaplanet-buys-additional-136-btc-expands-holdings-to-over-20000-bitcoin/