Metaplanet Plans $5.3 Billion Bitcoin Buy With Japan’s Largest Stock Warrant Deal

Metaplanet, a Tokyo-listed firm focusing on Bitcoin as a treasury asset, has unveiled a $5.3 billion plan to acquire more Bitcoin by issuing 555 million shares through stock acquisition rights. This deal marks the largest-ever issuance of stock warrants in Japan and the first instance where moving strike warrants, which adjust the exercise price with the market, have been sold at or above current share prices in the country.

The offering is part of Metaplanet’s “555 Million Plan,” a continuation of its earlier “21 Million Plan,” which raised $600 million earlier this year. The initial plan helped Metaplanet accumulate nearly 9,000 BTC. The new round aims to raise sufficient funds to increase its holdings to over 210,000 BTC by 2027, which would represent roughly 1% of the total Bitcoin supply.

Metaplanet intends to allocate nearly 96% of the capital raised to directly purchasing Bitcoin. Smaller portions of the funds will be used for bond redemptions and income-generating strategies, such as selling put options. The company views Bitcoin as a hedge against Japan’s prolonged negative interest rates and the weakening yen. To mitigate dilution and protect shareholders, the issuance includes a minimum exercise price and gives the company the right to temporarily suspend conversions. Shares will be sold to EVO FUND, a Cayman-based fund that has supported Metaplanet’s previous financing deals.

Metaplanet’s shares have surged by more than 275% this year as the company executes its Bitcoin accumulation strategy. Despite this, the shares closed down 1.6% in Friday’s trading session. The company’s aggressive approach to Bitcoin investment reflects a broader trend among institutional investors and corporations seeking to diversify their portfolios with digital assets as a hedge against traditional financial market risks.

This significant move by Metaplanet underscores the growing interest and investment in cryptocurrencies within the region. The decision to raise such a substantial amount of capital through stock warrants is strategic, as it allows the company to attract investors without diluting the existing shareholder base. The success of this deal will depend on market conditions, investor sentiment, and the overall performance of the cryptocurrency market. However, given the scale of the deal and the strategic importance of Bitcoin, it is likely to attract significant attention from both domestic and international investors.

In summary, Metaplanet’s plan to raise $5.3 billion through Japan’s largest stock warrant deal is a bold and strategic move aimed at expanding its Bitcoin holdings. This initiative highlights the company’s commitment to the cryptocurrency market and its belief in the long-term potential of digital assets. The success of this deal will be closely watched by industry observers and could set a precedent for future fundraising efforts in the cryptocurrency space.