Japan’s MicroStrategy Metaplanet is set to buy more Bitcoin with a $62 million fund it plans to raise from SARs
Metaplanet, a Japanese investment firm known for its big moves, has again made headlines with its latest announcement. The company revealed plans to raise $62 million by issuing its 12th Stock Acquisition Rights (SARs) series. This move aims to expand its Bitcoin holdings amid a weakening yen and the cryptocurrency’s surging value.
This bold strategy underscores Metaplanet’s commitment to cryptocurrency as a key part of its financial operations. By focusing on Bitcoin BTC $82 841 24h volatility: 0.8% Market cap: $1.64 T Vol. 24h: $33.68 B , Metaplanet is positioning itself as a leader in the Web3.
Details of the Metaplanet SAR Deal
Metaplanet will offer 29,000 SAR units to EVO FUND, a Cayman Islands-based investment entity, in a carefully structured deal. Each unit grants the right to purchase 100 shares, priced at 614 yen per right.
*Metaplanet Announces Issuance of Moving Strike Stock Acquisition Rights to Raise Up to ¥9.5 billion ($62 million) for Accelerated Bitcoin Accumulation* pic.twitter.com/bL7rs6Qkk4
— Metaplanet Inc. (@Metaplanet_JP) November 28, 2024
If EVO FUND exercises all the rights by December 16, 2024, the firm will secure a massive 9.5 billion yen, equivalent to $62 million. However, this move hinges on the approval under the Japan Financial Instruments and Exchange Act. This rule ensures compliance with the nation’s stringent financial regulations.
This is not the first time Metaplanet has used SARs to fuel its crypto ambitions. Last month, it completed its 11th series of SARs, raising an impressive 10 billion yen ($66 million). The company’s unrelenting focus on Bitcoin has become a defining feature of its strategy.
Thus far this year, Metaplanet has reshaped its treasury management to revolve exclusively around Bitcoin. The company has used debt and equity issuances to fund its growing reserves.
In the announcement, Metaplanet reaffirmed its commitment to Bitcoin, viewing it as essential for financial stability. The firm sees digital currency as a vital hedge and a cornerstone for the future of finance.
Bitcoin at the Core: Metaplanet’s Strategic Treasury Shift
But why Bitcoin? For Metaplanet, the answer is clear. The digital asset offers a hedge against the yen’s decline and is a good investment as its value continues to climb. Bitcoin recently hit a record high above $99,000, adding urgency to the firm’s drive to bolster its holdings.
Currently, Metaplanet owns 1,142 Bitcoin units, valued at approximately $109.16 million. This positions the firm as a significant institutional buyer of Bitcoin. It has drawn comparisons to MicroStrategy Inc (NASDAQ: MSTR), the US giant known for massive Bitcoin investments.
Metaplanet’s acquisition strategy mirrors MicroStrategy’s by using options trading to boost its Bitcoin reserves and income. This bold strategy has earned it the nickname “Asia’s MicroStrategy”.
Metaplanet is not stopping at Bitcoin acquisition. This week, the company finalized an exclusive licensing deal to launch Bitcoin Magazine in Japan. The magazine, already a trusted resource for the global Bitcoin community, will now deliver localized content tailored to Japanese audiences.
This venture highlights Metaplanet’s broader mission to invest in Bitcoin and champion its adoption and understanding in Japan.
Several firms share Metaplanet’s Bitcoin-focused strategy. Tesla and Block, Inc. have also made significant investments, viewing Bitcoin as a hedge against economic uncertainty. Rumble, a video platform, has recently adopted similar practices to align with Bitcoin’s growing financial relevance.
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