Metaplanet Issues New Shares at 11% Discount to Boost Bitcoin Holdings

Metaplanet, a prominent Bitcoin holding company in Japan, has announced plans to issue new shares at a discounted price of 553 yen per share. The company aims to raise 2041 billion yen (approximately 14 billion USD) through this offering, which is significantly lower than the closing price of 614 yen on the same day. This move is part of Metaplanet's strategy to increase its Bitcoin holdings, a strategy often referred to as "hodling."

Metaplanet currently holds 20,136 Bitcoins, making it the largest Bitcoin holding company in Japan. Traditionally, the company has used stock purchase rights to finance its digital currency acquisitions. However, the continuous decline in stock prices has made this strategy less effective. Since reaching a recent high in June, Metaplanet's stock price has dropped by over 60%. Since late August, when the company first announced its stock sale plan, the stock price has fallen by more than 30%.

In response to these challenges, Metaplanet is shifting its financing strategy. Last week, the company received shareholder approval to sell up to 5550 billion yen in preferred stock. This decision allows Metaplanet to raise significant funds without diluting the rights of existing common shareholders, providing more flexible and robust financial support for its future Bitcoin purchase plans.

The company's commitment to accumulating Bitcoin, despite the significant drop in its stock price, highlights its belief in the digital currency as a store of value. This strategy aligns with the broader trend of institutional investors increasingly viewing Bitcoin in this light. However, the substantial discount on the new stock offering reflects market skepticism and the challenges Metaplanet faces in maintaining its aggressive Bitcoin acquisition strategy.