Metaplanet Aims to Raise $5.3 Billion for 210,000 Bitcoin by 2027

Metaplanet, a Tokyo-listed company, has announced an ambitious plan to raise approximately $5.3 billion through the issuance of 555 million shares via stock acquisition rights. This initiative, dubbed the "555 Million Plan," follows the company's previous "21 Million Plan," which successfully raised $600 million and accumulated nearly 9,000 BTC. The primary goal of this new plan is to significantly increase Metaplanet's Bitcoin holdings to over 210,000 by 2027, which would represent approximately 1% of the total Bitcoin supply.

The funds raised will be predominantly used to purchase Bitcoin, with nearly 96% of the capital allocated for this purpose. The remaining funds will be directed towards bond redemptions and other income-generating strategies. Metaplanet views Bitcoin as a strategic hedge against Japan's economic challenges, including negative interest rates and a weakening yen. The company's CEO, Simon Gerovich, has emphasized the importance of Bitcoin as a store of value and a means to protect against economic uncertainties.

Metaplanet has executed Japan’s first-ever stock acquisition rights issuance priced above market, a notable departure from the typical 8 to 10 percent discount seen in similar financings. The structure is both shareholder-friendly and unprecedented in scale. The new stock warrants feature an adjustable exercise price based on market conditions, and the issuance includes measures to minimize dilution and protect shareholder interests. Shares will be sold to EVO FUND, a Cayman-based fund that supports Metaplanet's financing efforts. This move represents the largest stock warrant issuance in Japan's history, underscoring Metaplanet's commitment to expanding its Bitcoin holdings and leveraging the cryptocurrency as a key component of its investment strategy.

Metaplanet, which has been dubbed "Asia's MicroStrategy," started buying Bitcoin last year and now holds 8,888 BTC worth nearly $934 million at today's prices. Last year, it pivoted from its core hotel and technology business to become a Bitcoin treasury. It is aiming to acquire 210,000 Bitcoin, about 1% of the overall supply, by 2027 as part of a master plan. Metaplanet ranks among the best-known "Bitcoin treasuries"—a firm that buys and holds BTC and allows shareholders to get exposure to the asset without the risks involved in holding it directly.

Metaplanet has followed a path popularized by Nasdaq-listed Strategy, which started buying Bitcoin in 2020. Strategy now almost exclusively works to buy BTC and investors buy its stock as a proxy to the leading cryptocurrency. It's the largest corporate holder of Bitcoin, with 580,250 virtual coins. Metaplanet's CEO, Simon Gerovich, highlighted that the pricing of stock acquisition rights issuance "above market" was "a notable departure from the typical 8 to 10 percent discount" of similar financings. He added that "Bitcoin sets a new benchmark for capital formation."