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Highlights
- Metaplanet will purchase Bitcoin with nearly all the $1.4 billion from its fundraise.
- Firm targets 32,726 BTC holdings after the purchase, marking an aggressive reserve expansion.
- Stock drops 10% post-announcement but posts 500% price gains in one year.
Metaplanet has finalized its international share offering, significantly increasing the size of its fundraising plan. The company expanded the underwritten deal from 180 million to 385 million shares, resulting in a total raise of ¥205 billion (Japanese yen), or about $1.4 billion.
Metaplanet Expands Bitcoin Holdings With ¥183.7 Billion Allocation
According to the company notice, nearly all proceeds will go toward buying Bitcoin. Out of the ¥204.1 billion net proceeds, ¥183.7 billion is earmarked for Bitcoin purchases. Another ¥20.4 billion will support its Bitcoin income generation business.
The offering sets the issue price at ¥532 per share, with the issuance boosting the company’s total outstanding shares to nearly 1.5 billion. Metaplanet said it is positioning Bitcoin as its primary reserve asset. Based on current prices, the company could add about 12,590 BTC from the raise. At a Bitcoin price of $111,200, that addition would expand its holdings from 20,136 BTC to about 32,726 BTC.
The increase represents a 62.5% jump in its Bitcoin treasury. The firm previously declared its intention to steadily convert its reserves into Bitcoin, presenting itself as a “Bitcoin-first” institution. Recently, Metaplanet approved an $884 million plan to expand its Bitcoin treasury.
By making Bitcoin its core treasury asset, Metaplanet distances itself from traditional fiat-based reserves. Analysts believe the upsize in the offering reflects strong demand from investors who view the Bitcoin strategy as a long-term hedge against Japan’s structural economic challenges.
Share Price Falls After Fundraise Announcement, But Trend Remains Strong
The company confirmed that purchases will occur between September and October. The plan underscores how corporate treasuries are increasingly embracing digital assets. This raise means Metaplanet is making Bitcoin the focus of its balance sheet strategy. The company’s approach sets a precedent in Japan, where listed firms rarely adopt such an aggressive stance on cryptocurrency reserves.
However, the Metaplanet stock price showed quick swings. Shares fell sharply following the announcement, dropping nearly 10 percent in a single trading day. The stock showed the stock closing at ¥614, down from a previous close of ¥682.
Despite the daily drop, TradingView data has recorded strong gains over the longer timeframes. The share price is up 64% since the start of this year and more than 500 percent within the past year. Over the past five years, the stock has risen over 800 percent. Still, some investors sold shares after the fundraising plan because issuing more stock reduced the value of existing holdings.
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