Metaplanet is planning to raise $58.76 million through stock rights offerings as part of a broader fundraising goal of $69.13 million (10.8 billion yen) aimed at expanding its Bitcoin holdings. This strategic move is intended to enhance the company’s financial stability and capitalize on the growing value of Bitcoin. The funds will be used to increase the company’s Bitcoin reserves, positioning Metaplanet as a significant player in the cryptocurrency space.
Both Metaplanet and Semler Scientific have seen their shares rise after adopting a strategy similar to MicroStrategy’s, which involved significant investments in Bitcoin. This approach has helped these companies recover from their previous “zombie” status, where they were seen as struggling or stagnant. By investing in Bitcoin, these companies have managed to revive investor interest and improve their market performance.
Metaplanet to Raise $58.76 Million for Bitcoin Expansion Through Stock Rights Offerings
At a Bitcoin conference in Nashville, Metaplanet’s CEO, Simon Gerovich, revealed that the company had been exhibiting signs of becoming a zombie company. However, recognizing the potential of Bitcoin as a superior monetary asset, Gerovich decided to shift the company’s focus toward accumulating Bitcoin. He believed that this strategy could mitigate the risks associated with the depreciating yen and strengthen Metaplanet’s balance sheet over time.
To support this new strategy, Metaplanet announced on August 6 that it would issue stock acquisition rights to its shareholders. Each common shareholder will receive one stock acquisition right for each share they hold, with the rights being distributed on September 5 and taking effect from September 6. This move is designed to generate additional funds for the company’s continued investment in Bitcoin.
Metaplanet’s recent activities indicate a strong commitment to a “Bitcoin-first, Bitcoin-only” approach. After initially purchasing 117 BTC in mid-May, the company has aggressively increased its Bitcoin holdings, which now total nearly 246 BTC. Despite the recent volatility in global financial markets, including a sharp decline in Japanese stocks, Metaplanet’s strategy reflects a bullish outlook on Bitcoin’s long-term value. Whether this strategy will pay off depends on the future stability of the market.
