Bitcoin News Today: Metaplanet's Shareholders Greenlight $3.7B Bitcoin Push with Dual-Class Strategy

Metaplanet, Japan’s largest corporate Bitcoin treasury firm, has announced plans to raise up to approximately $3.828 billion to further expand its Bitcoin holdings. At an extraordinary general meeting, shareholders approved a significant overhaul of the company’s capital structure, including an expansion of authorized shares to 2.7 billion and the introduction of dual-class preferred stock. These changes aim to facilitate fundraising while safeguarding existing shareholder control and limiting dilution risks for common stockholders. Class A shares will offer fixed dividends for income-focused investors, while Class B shares will provide potential upside through conversion into common stock. This strategic move supports Metaplanet’s long-term objective to acquire 210,000 Bitcoin by the end of 2027.

The company recently executed a major Bitcoin purchase, acquiring 1,009 BTC for approximately $112 million, bringing its total holdings to 20,000 Bitcoin. This positions Metaplanet as the world’s sixth-largest corporate Bitcoin holder, with its Bitcoin treasury valued at roughly $2.2 billion. The average acquisition price of $102,607 per Bitcoin reflects a 6.75% profit relative to the current market price. The firm has also issued millions of new shares, including 11.5 million following warrant exercises, to fund its Bitcoin acquisitions and early bond redemptions. Despite this, Metaplanet’s stock price has dropped 54% since mid-June, creating challenges for its fundraising model and investor incentives.

To address these pressures, Metaplanet has announced a public share offering in overseas markets, aiming to raise approximately $880 million. This initiative is part of broader efforts to secure the $3.7 billion in funding required to achieve its Bitcoin accumulation goals. The company’s board must now finalize the specific terms of the share issuance and file registration documents with Japanese regulators. Analysts note that falling stock prices have reduced the appeal of warrant exercises for investors like Evo Fund, which has already acquired 10 million shares and has the potential to purchase an additional 34.5 million. This dynamic could further strain Metaplanet’s liquidity and limit its ability to acquire more Bitcoin at scale.

The trend of corporate Bitcoin accumulation is gaining momentum globally, with Metaplanet being one of several firms following the strategy pioneered by Strategy (formerly MicroStrategy). Public companies, including Trump Media & Technology Group, GameStop, and others, have acquired significant Bitcoin holdings in recent months. JPMorgan analysts have attributed the recent decline in Bitcoin’s volatility to increased corporate ownership, with over 6% of the total supply now held by institutional treasuries. These developments suggest a shift toward greater market stability, driven by the diversification of investor bases and the proliferation of Bitcoin-related financial products.

However, the corporate Bitcoin strategy remains speculative and subject to market risks. While Metaplanet and other firms continue to expand their treasuries, falling stock prices and tightening funding conditions could create vulnerabilities. If Bitcoin’s price were to decline significantly, corporate treasuries could face margin calls, liquidity constraints, and forced selling. Despite these challenges, Metaplanet and its peers remain optimistic about the long-term value of Bitcoin. The company’s dual-class share structure and fundraising initiatives reflect its commitment to maintaining its competitive position in the growing corporate Bitcoin market.

Source: [1] Metaplanet clears path for $3.7B Bitcoin accumulation (https://cointelegraph.com/news/metaplanet-shareholder-approval-bitcoin-funding-3-7b-raise) [2] Bitcoin is getting boring. That could open more doors for the crypto asset on Wall Street (https://finance.yahoo.com/news/bitcoin-is-getting-boring-that-could-open-more-doors-for-the-crypto-asset-on-wall-street-091231252.html) [3] 'Bitcoin is still on sale': Strategy buys another 4,048 BTC (https://www.theblock.co/post/368902/bitcoin-is-still-on-sale-michael-saylor-strategy-buys-more-btc) [4] Metaplanet Buys 1009 BTC, Reaches 20000 BTC (https://cointelegraph.com/news/metaplanet-20000-btc-treasury-share-price-slump)