Latest news with #555MillionPlan
Yahoo
4 days ago
- Business
- Yahoo
Metaplanet to Raise $5.3B, Japan's Largest Stock Warrant Deal, to Grow Bitcoin Stash
Metaplanet, the Tokyo-listed firm now positioning itself as a bitcoin BTC-focused treasury company, has launched a $5.3 billion plan to buy more BTC by issuing 555 million shares through stock acquisition rights. The deal, Metaplanet says, is the largest-ever issuance of stock warrants in Japan and the first time moving strike warrants, where the exercise price adjusts with the market, have been sold at or above current share prices in the country. The offering is part of what the company calls its '555 Million Plan,' a follow-up to its earlier '21 Million Plan,' which raised $600 million earlier this year and helped Metaplanet amass nearly 9,000 BTC. The new round aims to raise enough funds to boost its holdings to over 210,000 BTC by 2027, roughly 1% of the total bitcoin supply. Metaplanet is allocating nearly 96% of the capital raised to buying bitcoin directly, with smaller amounts earmarked for bond redemptions and income-generating strategies like selling put options. The company sees BTC as a hedge against Japan's prolonged negative interest rates and weakening yen. To reduce dilution and protect shareholders, the issuance comes with a minimum exercise price and gives the company the right to temporarily suspend conversions. Shares will be sold to EVO FUND, a Cayman-based fund that has backed Metaplanet's earlier financing deals. Metaplanet's shares have risen more than 275% so far this year as the firm follows through with its BTC accumulation plan. They closed down 1.6% in Friday's trading in to access your portfolio
Arabian Post
4 days ago
- Business
- Arabian Post
Metaplanet Unveils Unprecedented $5.4B Bitcoin Investment Initiative
Tokyo-based investment firm Metaplanet has announced a groundbreaking plan to raise approximately $5.4 billion through the issuance of 555 million moving-strike warrants, aiming to significantly expand its Bitcoin holdings. This move represents the largest stock acquisition rights issuance in Japanese capital markets history and marks the first instance of such warrants being issued above market price. The company's ambitious strategy, dubbed the '555 Million Plan,' sets a target to acquire 210,000 Bitcoins by the end of 2027, equating to roughly 1% of the total Bitcoin supply. This initiative follows Metaplanet's earlier '21 Million Plan,' under which it aimed to hold 21,000 Bitcoins by 2026. Having already surpassed interim goals with 8,888 Bitcoins, placing it tenth globally among corporate Bitcoin holders, Metaplanet is now intensifying its efforts. The issuance of 555 million new shares through moving-strike warrants is designed to optimize capital raising with minimal dilution. If fully exercised, this issuance could generate an estimated ¥770 billion at an initial strike price of ¥1,388 per share. The funds raised will be primarily allocated to purchasing Bitcoin, with smaller portions earmarked for bond redemptions and income-generating strategies like selling put options. ADVERTISEMENT Metaplanet's CEO, Simon Gerovich, highlighted the significance of this move, stating that it represents Asia's largest-ever equity raise dedicated to Bitcoin. He emphasized the company's commitment to accelerating its Bitcoin strategy, aiming for 30,000 Bitcoins by the end of 2025, 100,000 by 2026, and reaching the 210,000 target by 2027. The company's approach leverages Japan's deep capital markets, where demand for regulated Bitcoin exposure remains strong. Metaplanet's stock, known for its liquidity, offers domestic investors an accessible, tax-advantaged vehicle to gain Bitcoin exposure—a notable advantage given Japan's lack of spot Bitcoin ETFs. This strategic move positions Metaplanet alongside other major corporate Bitcoin holders, drawing parallels to MicroStrategy's pioneering Bitcoin-backed securities approach. The firm's execution to date has been swift, with its previous capital raise of ¥102.8 billion fueling a 225.4% increase in Bitcoin holdings year-to-date. Now, Metaplanet aims to deliver an even more aggressive 600% Bitcoin yield by the end of 2025.
