Metaplanet's $745M Bitcoin Bet: Japan's Largest Equity Offering

Metaplanet, a Japanese Bitcoin investment firm, has announced plans to raise 116 billion yen ($745 million) through the issuance of 21 million shares. The capital raise, set to be the largest equity offering in Asia explicitly aimed at Bitcoin acquisition, will be used to bolster the company's Bitcoin holdings.

The firm will offer the shares as part of a 0% discount moving strike warrant structure, allowing buyers to purchase the company's stocks at a fixed price tied to the stock's closing price on the prior trading day. This marks the 13th to 17th series of stock acquisition rights allotted to EVO FUND, with an exercise period running from Feb. 18, 2025, to Feb. 17, 2027. If all the warrants are exercised, Metaplanet's total shares will increase by 21 million, resulting in a dilution rate of approximately 53.61%. However, the firm clarified that this dilution would occur gradually over the two-year exercise period.

With the raise, Metaplanet aims to significantly increase its BTC holdings as part of its broader crypto-focused strategy. The firm, currently holding 1,762 BTC (worth $181.66 million), plans to expand its reserve to 10,000 BTC by the end of 2025 and 21,000 BTC by 2026. This aggressive approach aligns with the firm's goal of leveraging Bitcoin as a reliable store of value amidst a declining yen, which recently approached 160 yen per US dollar.

Metaplanet plans to allocate 111.3 billion yen of the planned 116 billion yen raise to the direct acquisition of Bitcoin. The remaining 5 billion yen will support its Bitcoin treasury operations, which delivered over 500 million yen in profits last fiscal year. The firm concluded that this strategy will bolster its long-term growth and enhance shareholder value.