Metaplanet raises ¥10B to expand Bitcoin holdings
The Essentials at a Glance
- Metaplanet has raised 10 billion yen (approx. 64 million euros) to expand its Bitcoin holdings.
- Despite a 5.85% drop in its stock price, the company saw an impressive 644% value increase in 2024.
- Metaplanet is often referred to as “Asia’s MicroStrategy” due to its similar strategy to the U.S. company, which heavily invests in Bitcoin.
- Bitcoin markets remain volatile, with the BTC price falling from a peak of USD 69,000 to USD 66,942.
Metaplanet Bets on Bitcoin
Metaplanet, a Japanese company, recently made headlines by significantly increasing its Bitcoin holdings. The company raised 10 billion yen through the sale of stock options and plans to use these funds to further expand its Bitcoin reserves. This aggressive strategy has earned Metaplanet the nickname “Asia’s MicroStrategy,” in reference to the U.S. company known for its large Bitcoin investments.
Details of the Capital Increase
On October 15 and 16, 2024, Metaplanet made two large Bitcoin purchases, bringing the total amount of Bitcoins held by the firm to 861.4 BTC. These purchases were funded by the issuance of the 11th series of stock option rights, in which 13,774 shareholders participated. The capital increase was fully supported by the EVO FUND, which has committed to exercising all transferred rights by October 22, 2024.
Volatility in the Bitcoin Market
While Metaplanet continues its Bitcoin strategy, the Bitcoin market remains volatile. After reaching a peak of USD 69,000, the BTC price fell by more than 2% to USD 66,942. These fluctuations underscore the uncertainty that continues to shape the cryptocurrency market. Nevertheless, Metaplanet sees Bitcoin as a way to hedge against Japan’s economic challenges, such as negative interest rates and quantitative easing.
Shareholders’ Reaction and Impact on Stock Price
Despite the capital increase and Metaplanet’s positive long-term performance, the company’s stock saw a 5.85% drop following the stock option sale. The price fell below 1,200 JPY, recently trading at 1,188 JPY, representing a further decline of 6.09%. Nevertheless, the company remains strongly positioned with a 644% value increase in 2024.
CEO on Future Plans
Somin Gerovich, CEO of Metaplanet, stated that once the capital increase is completed, the company will have raised a total of 10 billion yen. He thanked shareholders for their support and emphasized that these funds are crucial to achieving the goal of becoming one of the largest Bitcoin holders. The final results of the capital increase will be announced once the EVO FUND completes its transactions.
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Our Assessment
Metaplanet is pursuing a bold strategy by heavily investing in Bitcoin to hedge against Japan’s economic challenges. Despite short-term setbacks in its stock price, the company’s long-term performance shows impressive results. Volatility in the cryptocurrency market remains a risk, but Metaplanet appears determined to strengthen its position as a significant Bitcoin investor. Whether this strategy will be successful in the long term depends not only on the development of Bitcoin’s price but also on the company’s ability to continue convincing its shareholders.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $66,791.00 |
| 24h % | -1.08 % |
| 7d % | -0.23 % |
| 30d % | 4.98 % |
| 60d % | 3.98 % |
| 1y % | 117.24 % |
| Market Cap | $1,321,659,728,418.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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