Metaplanet – the Japanese hotel and real estate company turned Bitcoin Treasury Company – announced on Tuesday that it would issue 385,000,000 shares to expand Bitcoin holdings as well as related businesses.
The shares are being sold in an international offer outside Japan for 553 yen each. This will raise approximately 212.9 billion dollars ($1.44 billion) according to the company. said. The price is 9.9% less than Metaplanet’s closing price on Tuesday of 614yen.
On Sept. 16th, investors and underwriters will make a transfer of funds to the firm. 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. New stock will be sold instead, increasing the risk to existing 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.
It follows a string You can also find out more about the following: Bitcoin purchases You have to be able to say that. propelled Metaplanet According to the industry, the company has 20,137 BTC in its account. data.
Metaplanet has officially ceased to exist. classified It has been shifting its focus to digital assets as a hotelier for over a 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 over 150% 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 increasing risks
Metaplanet’s Bitcoin strategy is facing headwinds after an initial rush 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 have warned that declining premiums are likely to be the main source of volatility among Bitcoin treasury firms. 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.
The strategy is gaining traction with many companies, who are now focusing on digital asset treasury model.
Public companies have now collectively held more than one million BTC. some treasuries have begun expanding EtherETH), Solana (SOL() and altcoins.
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Source: cointelegraph.com
