Japanese publicly listed firm Metaplanet reportedly aims to secure $62 million for acquiring more Bitcoin with its current holdings sitting at a substantial 1,142 BTC.
If Metaplanet succeeds in its plans by securing the funds required, it will then proceed to purchase around 652 more Bitcoin (BTC).
The Japanese investment company said that it intends to secure more than $62 million (appr. 9.5 billion Japanese yen) via a stock acquisition strategy in order to acquire additional BTC for its corporate treasury. The firm’s treasury presently notably holds more than 1,140 BTC valued at well over $100 million at the time of writing.
The firm stated recently that it will be issuing a 12th Stock Acquisition Rights to EVO Fund, which is an investment management company that’s operating in the Cayman Islands (via a third-party allotment of 29,000 units).
Metaplanet explained that the majority of the funds raised this time “will be strategically allocated for the purchase of additional Bitcoin.” The firm added that they have made it clear that aim to “utilize debt and periodic stock issuance to systematically increase Bitcoin holdings while reducing exposure to a depreciating yen.”
Metaplanet’s management also mentioned Bitcoin’s “prominence” continues to grow after the flagship digital currency reached hit another all-time high of more than $99,500 this past week.
The Asian investment firm said that the Japanese yen, like most fiat currencies, continues to depreciate in value, with the USD/JPY exchange rate now actually “returning to the 154 level on the same day, presenting ongoing concerns.” They added that given these circumstances, they now realize the urgent “importance of increasing their Bitcoin holdings.”
Should this transaction get approved under Japan’s Financial Instruments and Exchange Act, the stock acquisition may be carried out between the dates of December 16, 2024 all the way up to June 16, 2025.
And if Metaplanet secures $62 million, then it may acquire around 652 Bitcoin at the price of approximately $95,000.
The company further revealed that it’s now placing its Metaverse-focused initiative on pause as there is still no “prospect of profitability, and has decided to incorporate the purchase and holding of Bitcoin as part of their stated corporate treasury strategy.”
Last month, Metaplanet reportedly finalized its 11th Stock Acquisition Rights, acquiring $66 million (allocated to acquiring more Bitcoin).
The company initially shared its intentions to purchase BTC back in April.
During this time period, Metaplanet’s company stock price has surged by more than 1,300% in the last year alone and is trading at roughly $15.60, at the time of writing.
Many other companies have adopted a similar strategy and have added Bitcoin to their balance sheets.
As reported, Rumble revealed its plans to acquire Bitcoin. The Genius Group also purchased 110 Bitcoin for $10 million.