Metaplanet has announced a share sale aimed at increasing its Bitcoin reserves. The expected funding will primarily be allocated for the purchase of this cryptocurrency.
Share Sale Details
Metaplanet plans to issue 180 million new shares through an underwritten offering, with the possibility to increase this to 375 million shares if demand is strong. The final price is expected to be set between September 9 and 11.
Company's Long-Term Strategy
The company stated that a large portion of the proceeds from the sale will be directed toward purchasing Bitcoin. Additionally, around ¥6.5 billion, equivalent to $43.9 million, has been set aside for what it calls its Bitcoin Income Generation Business. Metaplanet believes that Bitcoin's fixed supply and low-cost transfer make it a key asset for its treasury.
Market Position Impact
To date, Metaplanet's funding has primarily come from stock acquisition rights, which saw its share price increase by 445% by mid-June. However, the stock's price later dropped by 53%, prompting the company to explore alternative funding methods. Despite volatility in its share price, the company’s long-term strategy remains unchanged.
Metaplanet continues to expand its Bitcoin reserves, strengthening its market position and protecting itself from economic instability.
