Japanese hospitality and real estate group Metaplanet has announced plans to issue 385 million new shares to increase its Bitcoin investments.
Share Offering Plan
Metaplanet stated that the shares will be sold through an international offering outside Japan at a price of 553 yen (approximately $3.75) each. The offering is expected to raise about 212.9 billion yen (around $1.44 billion). The issue price represents a 9.9% discount to the closing price of 614 yen.
Use of Proceeds
The proceeds will be used to purchase additional Bitcoin between September and October and to expand the company's Bitcoin income-generating business. Metaplanet intends to make these acquisitions as a hedge against further depreciation of the Japanese yen.
Bitcoin Market Risks for the Company
While the company's Bitcoin strategy has significantly driven stock prices up over 150% in the past year, shares have fallen nearly 39% in the last month. Analysts warn that narrowing premiums could become a key source of volatility for Bitcoin treasury companies.
Metaplanet continues to adapt to changes in the digital asset market; however, risks due to premium compression and recent stock declines require attention from investors and observers.
