Metaplanet Raises $531M, Revises Bitcoin Capital Allocation Policy

Japan’s corporate Bitcoin treasury company Metaplanet has secured almost $531 million in capital to expand its Bitcoin holdings. The company’s board has also approved a revised capital allocation policy with mNAV clause. The stock jumped almost 5% on Monday amid Bitcoin rebound to $74K.

Bitcoin Proxy Metaplanet Raises $531 Million

Metaplanet has raised almost $255 million from global institutional investors via a new share placement priced at a 2% premium, according to a press release on March 16. The company has also secured $276 million in capital via fixed-strike warrants at a 10% premium.

This pushes the total capital to around $531 million as the firm plans to buy 210,000 BTC. CEO Simon Gerovich took to X to reach out to the wider crypto community and stakeholders about the latest raise as Metaplanet targets 100,000 BTC holdings this year.

Metaplanet company holds 35,102 BTC worth $2.57 billion and the mNAV is at 1.21. The company is still sitting at an unrealized loss of $1.21 billion. The company is yet to announce a Bitcoin purchase this year.

Board Approves New Capital Allocation Policy

Metaplanet’s board of directors today approved a new capital allocation policy to help the company maximize long-term corporate value and optimize long-term value for shareholders.

The strategy aims to boost BTC yield by the effective use of perpetual preferred shares. It proposes to pause in capital raising through common share issuance when mNAV falls below 1 and share buybacks to maximize BTC yield.

Simon Gerovich said the company issued 100 million moving strike warrants with a first-of-its-kind mNAV clause under the new capital strategy. “Exercise is only permitted when the stock trades above 1.01x mNAV, ensuring every share issued increases shareholder value,” he added.

It will enable the company to raise an estimated $234 million in additional capital to buy more BTC. This gets unlocked only when it’s accretive to BTC per share.

Proceeds are earmarked primarily for acquiring more BTC, with the firm eyeing a path toward holding substantial portions of Bitcoin’s total supply in the coming years. Recent reports indicate Metaplanet aims to build one of the largest public corporate Bitcoin treasuries globally.

As CoinGape reported, Metaplanet launched two new subsidiaries, Metaplanet Ventures and Metaplanet Asset Management. The VC arm will invest $25 million (4 billion yen) over the next few years, while the other will operate as a U.S.-based firm focusing on bitcoin investment products.

Metaplanet Stock Jumps

Metaplanet stock closed 4.83% to 391 JPY on Monday. The intraday low and high were 376 and 402 JPY, respectively. Trading volume rocketed over 38 million, significantly higher than the average volume of 28 million.

Metaplanet stock has skyrocketed more than 16% in a week and over 20% in a month. The rising Bitcoin prices amid bullish sentiment among institutions and derivatives traders helped fuel positive sentiment.

BTC price trades at $73,850, up almost 3% in the past 24 hours. The 24-hour low and high are $71,282 and $74,395, respectively. Moreover, trading volume has increased by 102% over the last 24 hours.