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Breaking: Metaplanet To Raise $150M to Buy More Bitcoin Despite Crypto Crash

Paul Adedoyin
2 hours ago Updated 41 minutes ago
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via [email protected]
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Gold Bitcoin coins burst outward behind the Metaplanet logo, symbolizing the company’s expanding Bitcoin-focused treasury strategy.

Highlights

  • At the time when the cryptocurrency market is fluctuating, Metaplanet is raising $150 million to expand its Bitcoin treasury.
  • The new Class B Preferred Shares have quarterly pay and safeguard current shareholders.
  • The company actively increases BTC holdings as it feels that the best time to buy is when the price is going down.

Metaplanet is seeking funds of up to $150 million dollars to purchase more Bitcoin even as the crypto market remains highly volatile. The funds will also be used for other operational needs of the company.

Capital Raise Positions Metaplanet to Buy Bitcoin at Market Lows

A formal notice revealed that the company has passed a resolution permitting the issue of additional Class B Preferred Shares through a third-party allotment. Hence, it intends to seek further approval of the company shareholders in December.

Stocks will also be distributed to few foreign investors. Executives claimed the structure curbs stock dilution and safeguards existing common shareholders.

The ClassB Preferred Shares have the attraction of paying quarterly dividends, pegged to Japan’s reference rate of interest (JPY TONA). Also, there is a fixed margin on the rate so that the investors would have a predictable yield.

Dividends shall be distributed in March, June, September and December. According to Metaplanet, this structure provides the institutional investors with a common entity and accommodates its Bitcoin-oriented strategy.

CEO Simon Gerovich recently explained that Metaplanet is not a competitor with Bitcoin ETFs. According to him, each have a different approach to their BTC strategies.

The majority of the money will be used to continue purchasing Bitcoin. According to the company, consistent Bitcoin purchase is a fundamental part of its treasury model especially during declining markets.

Metaplanet Adjusts Financing Model To Support Bitcoin Growth

According to the company, Bitcoin will is a long-term insurance against inflation and currency depreciation than assets. The management feels that it needs to continue purchasing at any point in the market cycle to ensure that it preserves a reserve strategy.

Its approach is similar to that of Strategy led by Michael Saylor that keeps adding to its Bitcoin Treasury. The fundraising comes in the wake of a significant drop in BTC price and a negative market mood.

The management states that periods of downturns offer strategic buying opportunities for the growth of its treasury over the long-term. Still, some analysts expect more price drops ahead. Veteran trader Peter Brandt recently warned that Bitcoin could even drop toward $58,000 if sell-offs intensify.

Metaplanet will also use the proceeds to nullify some of the stock acquisition rights from previous rounds. The board has approved the right of retiring the 28th series, 29th series, and the 32nd series.

The company claims that the action makes its capital structure stable and more aligned to shareholders in the long term. The filing also indicates that Metaplanet will consider listing its Class B Preferred Shares on the Tokyo Stock Exchange.

However, the company noted that an approval is not guaranteed. The company believes listing the preferred class could attract larger institutional investors interested in Bitcoin-linked yield products.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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