- Metaplanet shares its bold Bitcoin strategy with an 8.5B yen ($58.76M) investment plan.
- At the Bitcoin 2024 conference in Nashville, executives at Metaplanet and Semler Scientific expressed admiration for MicroStrategy’s Bitcoin playbook.
- The new strategy aims to accumulate a considerable amount of Bitcoin based on confidence in the asset’s long-term appreciation.
Metaplanet is looking to offer stock rights to fund a $58.76M Bitcoin expansion. The plan is part of a larger fundraising goal totaling around $69.13M (10.8B yen) to bolster its Bitcoin holdings.
Both Metaplanet and Semler Scientific shares have soared after following MicroStrategy’s Bitcoin playbook. This year, the strategy inspired them to emerge from their ‘zombie’ status.
On July 25 at the Bitcoin Conference in Nashville, Metaplanet’s CEO Simon Gerovich described how the firm was beginning to show characteristics of a zombie company. Gerovich eventually understood that Bitcoin could reduce the company’s exposure to the fast-depreciating yen while strengthening its balance sheet.
We realized that Bitcoin is the apex monetary asset [and] something great for our treasury to have… we then made it our stated goal to own and to purchase as much Bitcoin as we can over time. Metaplanet’s CEO Simon Gerovich
On August 6, Metaplanet announced ‘each common shareholder will receive one stock acquisition right for each share of common stock they hold.’ All common shareholders will receive the rights on September 5, with the allotment taking effect from September 6.
*Metaplanet announces ¥10.08 billion Gratis Allotment of Stock Acquisition Rights; proceeds to fund additional purchases of $BTC* pic.twitter.com/4OdTFdHnfF
— Metaplanet Inc. (@Metaplanet_JP) August 6, 2024
Metaplanet first dipped its toes into Bitcoin’s waters in mid-May when it bought 117$BTC. After that, it seems to have been following a ‘Bitcoin-first, Bitcoin only‘ strategy.
Metaplanet’s recent investment in Bitcoin coincides with the current volatile financial market. Japanese stocks surged more than 10% on Tuesday, a day after experiencing their worst plunge since 1987. This plunge caused a cascading effect, with Bitcoin falling as low as $49,000.
Final Thoughts
Metaplanet’s move shows that $BTC HODLers remain bullish and are not cowed by global share markets’ recent massive falls.
Will the market stabilize or crash again? We’ll have to wait and see.
References
- Notice Regarding the Gratis Allotment of Stock Acquisition Rights (Metaplanet’s announcement)
- Metaplanet, Semler Scientific were ‘zombie companies’ until Bitcoin, execs say (Cointelegraph)
- Japanese firm Metaplanet to invest $58.76M in Bitcoin (Cointelegraph)
- Strategic Treasury Transformation and Bitcoin Adoption by Metaplanet (Metaplanet media release)
- (Progress of Disclosure) Notice Concerning the Purchase of Bitcoin (Metaplanet release)
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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