Metaplanet, Asia's MicroStrategy, to Invest $58.76M in Bitcoin Through Stock Acquisition Rights Offering

Metaplanet, a Japanese investment and consulting firm which has been touted as Asia's version of MicroStrategy, has announced plans to invest approximately 8.5 billion yen ($58.76 million) in Bitcoin through a stock acquisition rights offering to shareholders.

Japanese investment and consulting firm Metaplanet, which has been described as Asia’s version of MicroStrategy, is planning to invest around 8.5 billion yen ($58.76 million) in Bitcoin as part of a stock acquisition rights offering to shareholders.

The company’s board of directors has approved the gratis allotment of 11th series stock acquisition rights to all common shareholders, according to an announcement Monday. The rights will be distributed to shareholders of record as of September 5, with the allotment taking effect from September 6.

Shareholders will receive one stock acquisition right for each share held, and the exercise price is 555 yen per right.

The exercise period for general investors will run from September 6 to October 15, 2024, after which any unexercised rights will be acquired by the company. These rights will not be listed or tradable on exchanges.

Foreign shareholders may face restrictions on exercising rights, and exercising rights for less than 100 shares will result in holding fractional shares. The company said it expects no tax implications when rights are allocated or exercised.

Metaplanet’s decision to allocate the majority of raised funds to Bitcoin is due to the cryptocurrency’s potential for long-term appreciation and its ability to hedge against currency depreciation, especially the yen.

This investment strategy comes as Japan’s economy faces challenges, including high debt levels and prolonged negative real interest rates.

The company said it views Bitcoin as a strategic financial reserve asset that aligns with its vision of utilizing innovative financial strategies to enhance corporate value and growth.

“Before we began pivoting into Bitcoin, the firm was beginning to show characteristics associated with zombie companies,” Metaplanet CEO Simon Gerovich said in a statement.

In addition to the Bitcoin purchase, Metaplanet plans to allocate 1 billion yen ($6.91 million) for corporate bond redemption and 500 million yen ($3.46 million) for working capital.

The company said it held 245.992 BTC with a market value of 2,461 million yen as of July 31, 2024.

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