Metaplanet Invests $58 Million in Bitcoin Amid Japanese Market Rebound, Calling It the ‘Best Currency Asset’

Metaplanet, a Japanese investment and consulting firm dubbed the Asian version of MicroStrategy, announced that it plans to invest about 8.5 billion yen ($58.76 million) in Bitcoin by offering stock options to shareholders. The move comes as part of a massive fundraising effort worth about 10 billion yen ($69.13 million).

The Board of Directors of the Company has approved the free allocation of the 11th share subscription right to all ordinary shareholders. The right will be distributed to shareholders of record as of September 5, and the allocation will take effect from September 6. Shareholders will receive one share subscription right for each share they hold, with an exercise price of 555 yen per right.

Event Period and Tax Impact

The exercise period for general investors is from September 6 to October 15, 2024, after which the Company will acquire any unexercised rights. These rights will not be listed or traded on an exchange. Foreign shareholders may be subject to restrictions on exercising their rights, and will hold minority shares if they exercise less than 100 shares. The Company anticipates that no taxes will be levied when the rights are assigned or exercised.

Metaplanet’s decision to allocate the majority of its funds to Bitcoin is based on the long-term appreciation potential of cryptocurrencies and their ability to hedge against currency depreciation, particularly in the yen. This investment strategy comes amidst Japan’s challenging economic environment, which is characterized by high debt levels and long-term negative real interest rates.

The company sees Bitcoin as a strategic treasury reserve asset that aligns with its vision of leveraging innovative financial strategies to enhance corporate value and growth. Metaplanet CEO Simon Gerovich said that before making the strategic move to Bitcoin, the company was “beginning to exhibit characteristics associated with zombie companies.”

Corporate bond distribution

In addition to the Bitcoin purchase, Metaplanet plans to allocate 1 billion yen ($6.91 million) to corporate bond repayment and 500 million yen ($3.46 million) to operating funds. The company currently holds 245,992 bitcoins with a market value of 24.61 million yen as of July 31, 2024.

According to the Q&A page, Metaplanet chose this method to strengthen its financial foundation and increase corporate value, and emphasized that it provides equal opportunities to all shareholders while raising capital. The company advises shareholders to carefully consider the information provided and make investment decisions at their own risk.

In July, Metaplanet’s stock price soared by about 10% after the company secured another Bitcoin purchase, signaling a strategic emphasis on cryptocurrencies as a key financial asset. The company’s Bitcoin holdings are estimated at 246 BTC, worth about $13 million at the time of writing.