Japan’s leading Bitcoin treasury firm, Metaplanet, has just acquired 1,009 BTC, bringing its total holdings to 20,000 BTC while issuing millions of new shares.
As per a Monday Metaplanet announcement, the firm acquired 1,009 BTC for 16.479 billion yen (approximately $112 million), reaching a total of 20,000 BTC. On the same day, it announced the issuance of 11.5 million new shares last week, coinciding with an investor’s exercise of stock acquisition warrants.
According to BitcoinTreasuries.net data, Metaplanet ranks as the sixth-largest Bitcoin treasury globally and the top in Japan. The firm purchased Bitcoin at an average price of $102,607, yielding a 6.75% profit based on current Bitcoin prices.
The investor, Evo Fund, acquired 10 million shares at $5.67 each and 1.5 million at just under $6, totaling approximately $65.73 million. Metaplanet plans to use these funds to finance the early redemption of around $20.4 million in previously issued bonds. Evo Fund retains rights to an additional 34.5 million shares.
Related: Dutch crypto firm Amdax sets sights on 1% of Bitcoin supply with $23M treasury launch
Metaplanet’s Response to Market Pressures
This announcement coincides with Metaplanet experiencing mounting challenges, with its share price falling significantly and threatening its fundraising model for building its Bitcoin treasury. The firm’s stock has dropped 54% since mid-June, while Bitcoin has only gained about 2% in that timeframe.
Analysts noted that decreasing stock prices make it less appealing for Evo Fund to exercise its warrants, thereby constraining Metaplanet’s liquidity and reducing its ability to acquire more Bitcoin. Nonetheless, the firm’s strategy appears to be evolving to adapt to this new reality.
Last week, Metaplanet revealed its plans to raise approximately 130.3 billion yen ($880 million) through a public share offering in foreign markets. Shareholders will vote today on whether to approve the issuance of up to 555 million preferred shares, which could potentially raise as much as 555 billion yen ($3.7 billion).
Related: Bitcoin treasury firm Metaplanet advances to FTSE Japan and All-World indexes
Bitcoin Treasuries as Safe Investments
Since Strategy — formerly known as MicroStrategy — pioneered the corporate Bitcoin treasury strategy with notable success, many companies have followed suit. However, this strategy is not guaranteed to be effective in the long run.
Indeed, several Bitcoin treasuries appear to be facing significant challenges. They can falter when Bitcoin’s price declines and their stock net asset value premiums evaporate, limiting funding opportunities. Consequently, loans or margin calls could force these companies into a position where they must sell Bitcoin.
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