Metaplanet, a Japanese hotel and real estate company that is now a Bitcoin-treasury firm, announced on Tuesday the issuance of 385 million shares as part of its expansion plans for Bitcoins and related business.
The company will sell the shares through a foreign offering in other countries at a price of 553 yen each ($3.75), raising approximately 212.9 billion dollars ($1.44 billion) said. The issue price is a discount of 9.9% to Metaplanet’s Tuesday close price (614 yen).
Payment will be made on Sept. 16. Investors and underwriters are required to transfer money. Delivery will take place on September 17, the day after investors receive their new shares.
The move represents an equity offering, not a bond issuance — meaning there is no coupon rate. The new shares are being issued, which increases the risk of dilution for current shareholders.
Metaplanet has said that the proceeds of its sale will be spent on purchasing more Bitcoin.BTCThe company will use the BTC option trading to generate income and protect against further depreciation.
This is the move that follows a string The following are some examples of how to use Bitcoin purchases You have to be able to say that. propelled Metaplanet Industry reports say that the BTC balance of 20,137 BTC puts it among the top public BTC holders in the world. data.
Metaplanet has officially ceased to exist. classified As a hotelier, the company has focused on digital assets since more than one year. In 2024, the company announced its Bitcoin Treasury strategy as a way to hedge against inflation and negative interest rates. It also aimed to offset long-term impacts of Japan’s debt. Since then, it has repeatedly raised capital to acquire BTC — at the cost of further shareholder dilution.
Metaplanet’s shares have risen by more than 1500% in the past 12 months due to excitement about its Bitcoin-based strategy. In the last month, Japanese shares have dropped by nearly 39% despite the Nikkei Index’s 1.7% gain.
Related: Metaplanet’s Bitcoin strategy faces fundraising crunch as stock sinks: Report
Bitcoin Treasury Firms Face Mounting Risks
Metaplanet’s Bitcoin strategy is facing headwinds after an initial burst of excitement. The much-touted Bitcoin platform has been a major disappointment. “flywheel” Loss of momentum is a result, according to Bloomberg Law. The company has been forced to find new sources of funding, especially from the global markets.
Analysts say that narrowing premiums may become the main source of volatility in Bitcoin Treasury companies. The premium gap refers to the difference between a Bitcoin treasury firm’s share price and its net asset value (NAV) — a spread that has recently compressed, according to NYDIG global head of research Greg Cipolaro.
However, this strategy continues to grow in popularity, as dozens of businesses are pivoting towards digital asset treasury model.
Collectively, public companies hold over 1,000,000 BTC. some treasuries have begun expanding EtherETH), Solana (SOL() and altcoins.
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Source: cointelegraph.com
