Japan-based investment advisor Metaplanet announced a “gratis allotment of its 11th series of stock acquisition rights to all common shareholders” following a decision made at the company’s recent board of directors meeting.
The company plans to raise 10 billion Japanese yen, equivalent to around $69.13 million, with 8.5 billion yen ($58.76 million) set for investment in Bitcoin.
All common shareholders will receive the stock acquisition rights as of September 5, with the allotment becoming effective from September 6 onward.
The decision to invest the majority of the raised funds in Bitcoin is based on the expected long-term appreciation of the cryptocurrency and its potential to hedge against currency depreciation.
Last month, Metaplanet stated it adopted bitcoin as a reserve asset to mitigate risks associated with Japan’s massive debt burden and the yen volatility. Japan’s net debt to gross domestic product (GDP) ratio was the highest among G7 countries in 2023, at around 159%.
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The move also shortly after the Japanese stock market saw its worst one-day drop since 1987 after the Bank of Japan raised rates on short-term government bonds on July 31. This shift triggered a massive sell-off of cryptocurrencies, with Bitcoin and Ether falling 18% and 26%, respectively.
Metaplanet’s move follows its previous investments in Bitcoin. On July 8, the company acquired $2.5 million worth of BTC, totaling 42.5 BTC. After this purchase, Metaplanet held 203.7 BTC, bought at an average price of roughly $62,000 per BTC.
In April, the firm announced its entry into Bitcoin as a treasury asset, making its initial purchase for $6.5 million.
At the Bitcoin Conference in Nashville on July 25, Metaplanet executives highlighted the firm’s strategic pivot to Bitcoin. CEO Simon Gerovich described how the firm was showing signs of becoming a “zombie company” before adopting Bitcoin.
Gerovich stated, “We realized that Bitcoin is the apex monetary asset and would make a great element for the Japanese investment company’s treasury.”
Metaplanet’s strategy mirrors that of MicroStrategy, a Virginia-based software developer, which has accumulated 214,400 BTC worth $14.3 billion since it began purchasing the asset in 2020, making it the largest corporate holder of bitcoin.
