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Metaplanet acquires 1,009 bitcoins for about $112 million, bringing the total holdings of this Japanese company to 20,000 Bitcoins.The company’s shareholders approved an ambitious plan to increase its treasury’s $2.8 billion worth of Bitcoin by 2027.
The Tokyo listed company announced the acquisition on September 1, with an average purchase price of 16.3 million yen (about $110,720) per bitcoin.The capital expansion strategy has been voted at Metaplanet’s interim shareholder meeting.
The acquisition has brought Metaplanet’s Bitcoin treasury market value to $2.1 billion, consolidating its position as “the largest corporate Bitcoin holder in Asia.”In addition, the company has surpassed Riot Platforms to rank among the sixth largest Bitcoin holders in the world.
At the shareholders’ meeting, CEO Simon Gerovich elaborated on the company’s plan to acquire 210,000 BTC by 2027, accounting for about 1% of the total Bitcoin supply.
The strategy includes issuing up to 555 million preferred shares, which is expected to raise 555 billion yen (approximately US$3.8 billion) and the funds raised will be dedicated to Bitcoin acquisitions.
Eric Trump attended the meeting as a Metaplanet strategic consultant and had a fireside conversation with Gerovich.Trump praised Gerovich’s leadership, calling it “one of the most upright people I’ve ever met in my life” and said “strong leadership combined with Bitcoin is the winning combination.”
Afterwards, Gerovich asked more than 3,000 participants present whether they agreed to amend the company’s articles of association to allow the issuance of preferred shares, and the participants unanimously agreed.
The approved preferred stock plan includes two types of perpetual equity issuances.Class A shares will offer a 5% yield, aiming to compete with traditional fixed income products.
Meanwhile, Class B shares are at a higher risk, but include the option to convert to common stock.
Gerovich emphasized Japan’s unique advantages in the field of “Bitcoin-backed financing”, pointing out that Japan, as the country with the lowest interest rates in the G7, is “our hidden superpowers.”
The upper limit of preferred stock issuance is 25% of the company’s “Net Bitcoin Asset Value”.
As the acquisition was released, Metaplanet also announced its second-quarter results, with profits of 11.1 billion yen (approximately US$75.1 million), a 41% increase from the previous month.
The company’s Bitcoin earnings business, realized primarily through the sale of put options, contributed 1.9 billion yen (approximately $12.9 million) in sales revenue this quarter.
Recently, in FTSE Russell’s September assessment, Metaplanet was upgraded to a mid-cap stock and was successfully included in the FTSE Japan Index and the FTSE Global Index.
If Metaplanet achieves the goal of “holding 210,000 BTC in the treasury”, it will join Strategy in the ranks of companies that hold at least 1% of the Bitcoin supply.
