Metaplanet, a Japanese investment firm, has unveiled plans to raise ¥9.5 billion (approximately $62 million) through a stock acquisition scheme, a move that underscores the company’s growing commitment to Bitcoin. As the yen continues to depreciate, Metaplanet is doubling down on its strategy of increasing its Bitcoin portfolio to mitigate currency risks while positioning itself for long-term growth in the cryptocurrency market.
Stock Acquisition Scheme to Fund Bitcoin Purchases
The firm’s Board of Directors has approved the issuance of 29,000 units of its 12th Stock Acquisition Rights, which will be allocated to EVO FUND, a Cayman Islands-based investment entity, via a third-party allotment. These funds are earmarked for acquiring additional Bitcoin, a key element in Metaplanet’s strategy to transform its treasury management into a “Bitcoin-first” model.
This dynamic approach not only helps the firm bolster its Bitcoin holdings but also allows for flexibility in adjusting the stock acquisition price based on fluctuating market conditions. Despite the dilution of about 8% of the company’s shares, Metaplanet is confident this method will enable it to build a larger Bitcoin treasury without undue impact on its stockholders.
Metaplanet’s Bitcoin-Focused Treasury Strategy
Metaplanet’s move to increase its Bitcoin holdings is part of a broader vision to shift away from traditional fiat assets in favor of a more crypto-centric approach. With over ¥109 million worth of Bitcoin already in its treasury (1,142 BTC as of November 28, 2024), the company has made it clear that Bitcoin is a cornerstone of its financial strategy.
The firm’s CEO explained the rationale behind this shift: “We are prioritizing a Bitcoin-first, Bitcoin-only approach to treasury management.” This statement signals Metaplanet’s determination to continue accumulating Bitcoin through a combination of stock issuance and debt financing, further reducing its exposure to the depreciating Japanese yen.
Given the ongoing challenges in Japan’s economic environment, including inflation and a weaker yen, Metaplanet sees Bitcoin as a hedge against currency risk. The funds raised through this latest scheme will be utilized over the next 6–12 months, from December 2024 to June 2025, with a small portion allocated to operational expenses.
Following the Footsteps of MicroStrategy
Metaplanet’s Bitcoin strategy bears a striking resemblance to that of MicroStrategy, the American business intelligence firm that has made waves for its aggressive Bitcoin acquisitions. Since beginning its Bitcoin buying spree in April, Metaplanet has accumulated a substantial stake in the cryptocurrency.
To further its ambitions, Metaplanet recently approved a one-year debt issuance worth ¥1.75 billion (around $11.3 million) at an annual interest rate of just 0.36%. The proceeds from this debt issuance will also be directed toward Bitcoin acquisitions, supporting the company’s goal to expand its crypto reserves. These bonds, which are redeemable at face value in November 2025, will be drawn once final guarantee arrangements are completed.
A Bold Bet on Bitcoin Amid Economic Uncertainty
Metaplanet’s strategy signals a bold bet on Bitcoin as both a store of value and an investment vehicle. As the company continues to grow its cryptocurrency holdings, it is betting that Bitcoin’s long-term potential will far outweigh the risks associated with its volatile price swings.
By prioritizing Bitcoin and reducing exposure to Japan’s weakening currency, Metaplanet is positioning itself as a trailblazer in the growing trend of institutional adoption of cryptocurrency. Whether this strategy pays off will depend on a variety of factors, including the evolution of Japan’s economic conditions and Bitcoin’s performance over the coming months.
With its aggressive Bitcoin acquisition strategy, Metaplanet is making a clear statement about its future vision. As the firm continues to navigate the complexities of a depreciating yen and fluctuating cryptocurrency markets, its ability to adapt will be key to determining the success of its Bitcoin-focused treasury transformation.
