Bitcoin News Today: Metaplanet's Bitcoin Bet: Can Trump's Influence and $3.7 Billion Raise Secure Its Treasury Strategy?

Metaplanet, Japan’s leading bitcoin treasury firm, announced on Monday that it has acquired 1,009 BTC, valued at approximately $112 million, bringing its total bitcoin holdings to 20,000 BTC. This makes Metaplanet one of the world’s largest public corporate holders of bitcoin, potentially surpassing Riot Platforms in the rankings according to Bitcointreasuries.net data. The purchase was made at an average price of around $111,068 per Bitcoin, reflecting a strategic move to bolster its treasury amid fluctuating market conditions [1].

The firm simultaneously announced the issuance of 11.5 million new shares following an exercise of warrants by an investor, Evo Fund. This transaction has raised approximately $65.73 million, part of which will be used to redeem previously issued bonds. The firm is also pursuing a broader fundraising initiative, aiming to raise up to $3.7 billion through the issuance of preferred shares, with the bulk of proceeds expected to be directed toward purchasing more bitcoin [2].

Eric Trump, son of former U.S. President Donald Trump and an adviser to Metaplanet since March, attended the company’s extraordinary shareholders' meeting in Tokyo. His presence highlights the Trump family’s growing international engagement in the cryptocurrency space, particularly in Japan, where Metaplanet has become a dominant player in corporate bitcoin holdings. Eric Trump’s recent appearances include a speaking engagement at the Bitcoin Asia conference in Hong Kong, where he expressed optimism about the long-term value of Bitcoin [3].

The capital-raising initiative and Metaplanet’s strategic pivot to bitcoin have come amid challenges for the firm. Its share price has declined by 54% since mid-June, even as Bitcoin has gained 2% over the same period. Analysts have pointed out that the falling stock price reduces the incentive for warrant holders to exercise their rights, putting pressure on Metaplanet’s liquidity and its ability to continue acquiring Bitcoin. However, the company’s recent approval of a large-scale share issuance suggests it is adapting to the evolving market dynamics [2].

Despite these challenges, Metaplanet’s strategy reflects a broader trend in the corporate adoption of Bitcoin as a treasury asset. Firms such as MicroStrategy pioneered the approach, and others have followed, though not all have succeeded. The performance of Bitcoin treasuries is closely tied to the volatile price of the cryptocurrency, with some companies facing financial strain when prices drop and premiums on stock net asset values evaporate. The success of Metaplanet’s strategy will depend largely on its ability to secure sufficient funding and maintain a stable share price while navigating the uncertain crypto market [2].

Source: [1] The Block (https://www.theblock.co/post/368866/metaplanet-bitcoin-total-holdings-20000) [2] CoinTelegraph (https://cointelegraph.com/news/metaplanet-20000-btc-treasury-share-price-slump) [3] Yahoo Finance (https://finance.yahoo.com/news/eric-trump-advised-japanese-bitcoin-010054830.html)