Metaplanet Shareholders Approve New Funding Tools to Buy Bitcoin

Metaplanet and its shareholders just took the Bitcoin BTC $110 203 24h volatility: 1.5% Market cap: $2.19 T Vol. 24h: $39.50 B acquisition strategy to another level with the introduction of a new funding tool. Its shareholders approved a proposal that allows the firm to generate ¥555 billion, equivalent to $3.8 billion, from preferred shares. This highlights the Japanese financial powerhouse’s commitment to building a sustainable Bitcoin strategy. 

From Economic Crisis to Bitcoin Proxy

It is worth acknowledging that Metaplanet began diversifying its financial portfolio with BTC amid Japan’s economic woe. Currently, it looks like it has now taken a special liking to the flagship cryptocurrency. It is currently proceeding with a ¥555 billion ($3.8 billion) fund, raised through the issuance of preferred shares. 

The fund is meant for the expansion of its financing options following the slump of its stock. Coinspeaker published a report noting that Metaplanet’s stock price dropped 5.4% to test support at 830 JPY on September 1. This was shortly after the firm purchased the 1,009 BTC that took its Bitcoin holdings to a total of 20,000 BTC.

These holdings represent 66% of its target of having 30,000 BTC treasury by year-end. By the end of 2026, it intends to have gathered up to 100,000 BTC and 210,000 BTC by the close of 2027.

According to Metaplanet’s President, Simon Gerovich, the proposal for the ¥555 billion capital was taken to the shareholders of the hotel operator-turned-Bitcoin proxy, requesting their approval. During a meeting that was held in Tokyo, these entities voted in favor of authorizing 555 million preferred shares for potential issuance.

For context, these preferred shares describe securities that combine the features of equity and debt. Markedly, the Japanese firm had earlier announced plans to sell stock abroad to raise ¥130 billion ($881 million). It eventually succeeded with its $881 million plans, and this triggered its stock to surge by 5.70% on the Tokyo Stock Exchange, moving to 890 JPY.

In all past eight months, it has successfully raised more than ¥242 billion for the purchase of Bitcoin. It achieved this through the strike warrant agreement with investment firm Evo Fund. Although it has now placed a pause on all exercises of Evo’s warrants between Sept. 3 and Sept. 30. Hence, its reason for exploring new fundraising tools.

Strategy Holds Large Bitcoin Stash

While Metaplanet has amassed a big Bitcoin bag, making it the largest corporate BTC holder in Asia, its holdings are still only a small fraction of Strategy’s stash. The Michael Saylor-led business intelligence and software firm has continued to acquire more Bitcoin with no plan to offload its holdings anytime soon. 

Last week, it added 3,081 BTC to its already massive holding, at an average price of $115,829 per coin. 

This purchase increased the firm’s total holdings to 632,457 BTC, now valued at about $68.7 billion. Noteworthy, Bitcoin price is currently pegged at $110,256.52, with a 0.7% increase within the last 24 hours.

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