Japan’s Metaplanet Plans $137M Capital Raise to Increase Bitcoin Reserves

• Metaplanet will raise $137M to buy more Bitcoin, aiming to expand its BTC holdings.
• The announcement comes amid a crypto market pullback, pressuring both Bitcoin prices and Metaplanet’s stock.

Metaplanet, a Japan-based company focused on holding bitcoin as a core treasury asset, has announced a plan to raise around $137 million through a new stock offering. They say that the fund will be mainly used to purchase additional bitcoin for a long-term strategy. The decision was approved by Metaplanet’s board on January 29. 

Metaplanet Stock Offerings

Metaplanet plans to raise the funds by issuing new shares and stock warrants. It will issue 24.5 million common shares priced at  499 yen per share, and it will also issue 15.9 million additional shares. The total funds raised are around 21 billion yen. The company said that most of this money will be used to buy more Bitcoin. 

Dylan Leclair, Metaplanets’ head of bitcoin strategy, explained that this funding structure allows the company to raise the money immediately and takes advantage of stock price movements. It also allows the company to sell shares at higher prices if the stock rises. 

Metaplanet’s Bitcoin Goal

Metaplanet is steadily increasing its Bitcoin reserves, and currently it is holding 35,102 Bitcoin, which is valued at more than $3.08 billion. The company targets 100,000 Bitcoin by the end of 2026. Because of this aggressive accumulation strategy, Metaplanet is often referred to as Asia’s Microstratergy. 

The company has previously raised funds through other share offering which include Mercury Class B perpetual shares, which were used for the Bitcoin purchases, managing debt, and supporting income-generating businesses.

Despite the announcement, the Metaplanet’s stock has declined. The stock symbol TYO:3350 has closed 4% lower at 456 yen. Trading volume remained below its average of around 27 million shares. The drop reflects uncertainty in crypto markets. 

Metaplanet has reported $679 million in impairment losses due to bitcoin price volatility, and the stock is still up 14% year to date. But it has fallen more than 10% in recent days. The investors’ activity in Bitcoin futures also declined. This move from Metaplanet shows that it is doubling down on Bitcoin despite price volatility, and the company believes Bitcoin will rise in the long-term. 

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