Japanese company Metaplanet, previously a budget hotel, has issued 54 million new shares to expand its Bitcoin reserves. This event marks the largest single-day equity issuance for such purposes.
Share Issuance to Increase Bitcoin Holdings
Metaplanet issued 54 million new shares worth ¥74.9 billion (approximately $515 million) with the assistance of institutional investor EVO FUND. This event is the largest single-day capital raise through equity aimed at boosting Bitcoin reserves in history.
Bitcoin Accumulation Strategy
As part of its strategy, Metaplanet aims to become one of the largest corporate holders of Bitcoin. Currently, the company holds 11,111 BTC valued at around $1.07 billion, placing it among the top 10 corporate Bitcoin holders globally. Metaplanet plans to acquire 30,000 BTC by the end of 2025, 100,000 BTC by the end of 2026, and 210,000 BTC by the end of 2027.
Concerns Over Share Dilution
The issuance of shares by Metaplanet has raised concerns over potential share dilution, with the total shares set to rise to 760 million. This has drawn the attention of some hedge funds, who have begun placing short positions against the company.
As Metaplanet continues to grow its Bitcoin reserves, its strategy generates both interest and concerns among investors regarding the potential dilution of shares.
