Metaplanet plans $745M capital raise to boost Bitcoin holdings amid yen decline

Japanese Bitcoin investment firm Metaplanet has revealed plans to raise 116 billion yen ($745 million) through the issuance of 21 million shares, according to a Jan. 28 statement.

According to the firm, the significant capital raise would be used to bolster the company’s Bitcoin holdings.

Dylan LeClair, the firm’s director of Bitcoin strategy, emphasized the significance of this initiative, noting that it represents the largest equity offering in Asia aimed explicitly at Bitcoin acquisition.

The shares

Metaplanet said the 21 million shares would be available as part of a 0% discount moving strike warrant structure.

This would allow buyers to purchase the company’s stocks at a fixed price tied to the stock’s closing price on the prior trading day.

It added that this marks the 13th to 17th series of stock acquisition rights allotted to EVO FUND. The exercise period for these warrants will run from Feb. 18, 2025, to Feb. 17, 2027.

Metaplanet’s total shares will increase by 21 million if all the warrants are exercised, resulting in a dilution rate of approximately 53.61%.

However, the firm clarified that this dilution would occur gradually over the two-year exercise period.

Aggressive Bitcoin plans

With the raise, Metaplanet aims to increase its BTC holdings significantly as part of its broader crypto-focused strategy.

The firm—currently holding 1,762 BTC (worth $181.66 million)—plans to expand its reserve to 10,000 BTC by the end of 2025 and 21,000 BTC by 2026.

According to the company, this aggressive approach aligns with its goal of leveraging Bitcoin as a reliable store of value amidst a declining yen, which recently approached 160 yen per US dollar.

Considering this, Metaplanet stated:

“The company aims to raise funds in yen whenever possible and convert them into Bitcoin to preserve asset value, thereby increasing its Bitcoin holdings.”

So, Metaplanet plans to allocate 111.3 billion yen of the planned 116 billion yen raise to the direct acquisition of Bitcoin.

The remaining 5 billion yen will support its Bitcoin treasury operations, which generate revenue through options trading. These operations delivered over 500 million yen in profits last fiscal year.

Metaplanet concluded that this strategy will bolster its long-term growth and enhance shareholder value.