Metaplanet Inc., a publicly traded Japanese company, announced on August 6 that it will invest approximately 8.5 billion Japanese yen, or $58.76 million, in Bitcoin (BTC) through a new stock offering. The company plans to raise a total of 10 billion yen, or about $69.13 million, by issuing stock acquisition rights to all common shareholders.
The decision was made during Metaplanet’s Board of Directors meeting. All common shareholders will receive the stock acquisition rights as of September 5, with the allotment effective from September 6 onward.
*Metaplanet announces ¥10.08 billion Gratis Allotment of Stock Acquisition Rights; proceeds to fund additional purchases of $BTC* pic.twitter.com/4OdTFdHnfF
— Metaplanet Inc. (@Metaplanet_JP) August 6, 2024
Following in MicroStrategy’s footsteps
By allocating a substantial portion of the raised funds to Bitcoin, Metaplanet is doubling down on its “Bitcoin-first” strategy, which was announced in May 2024. This strategy seeks to position the company as a leading Japanese publicly-traded Bitcoin holding company, mitigate risks posed by Japan’s economic landscape and maximize shareholder value.
According to the company’s disclosure, Meteplanet pointed to Japan’s high debt levels, persistent negative interest rates, and weakening yen as factors compelling it to seek refuge in cryptocurrency.
By designating Bitcoin as a primary reserve asset, Metaplanet seeks to shield its balance sheet from the erosive effects of inflation.
“The potential long-term appreciation of Bitcoin and its role as a hedge against currency depreciation align with our vision of sustainable growth and enhancing corporate value,” it said in the disclosure.
Since entering Bitcoin in April, Metaplanet has held approximately 246 Bitcoins worth around $13.4 million. With the additional Bitcoin purchases, the company expects to increase its cryptocurrency assets greatly.
In addition to its massive Bitcoin investment, the company also announced on July 26 a partnership with Bitcoin Magazine to launch its Japanese edition. Metaplanet secured exclusive rights to operate Bitcoin Magazine Japan, marking a significant step in its mission to foster Bitcoin adoption in the country.
Japan’s Stock Market Takes a Historic Plunge
On Monday, August 5, the Japanese stock market suffered its worst one-day drop since 1987. An adjustment by the Bank of Japan – raising rates on short-term government bonds from 0% to 0.25% – triggered a chain reaction that shook global markets.
The yen’s subsequent surge in value made yen-denominated loans considerably more expensive, prompting a massive sell-off of assets, including cryptocurrencies. Bitcoin fell below $50,000 in early Asian trading on 5 August, wiping out over $500 billion in market capitalization in a single day.
According to Alternative.me, the Crypto Fear & Greed Index, which tracks market sentiment toward cryptocurrencies, has fallen into the “Fear” zone. At the time of publication, the index score sits at 17, a massive shift from the optimism that dominated the crypto market earlier this year.
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