Metaplanet Inc has unveiled plans to issue stock acquisition rights to all its common shareholders as part of a strategy to raise approximately 10 billion Japanese yen, or $69.13 million. Of this amount, 8.5 billion yen (about $58.76 million) will be invested in Bitcoin.
The distribution of these rights will start on September 5, with the formal allocation beginning the following day.
The company’s decision to channel a significant portion of its funds into Bitcoin is aimed at leveraging the asset’s long-term growth potential and its effectiveness as a hedge against currency devaluation.
The recent downturn in Japanese stocks, triggered by the Bank of Japan’s interest rate hike, led to a significant sell-off in cryptocurrencies, with Bitcoin and Ethereum falling sharply.
Previously, Metaplanet invested $2.5 million in Bitcoin in July, buying 42.5 BTC. This increased their total Bitcoin holdings to 203.7 BTC, with an average acquisition price of about $62,000 per BTC. The firm first entered the Bitcoin market in April with a $6.5 million investment.
At a recent Bitcoin conference, Metaplanet’s CEO, Simon Gerovich, shared that the company was struggling before shifting its focus to Bitcoin, now viewing it as a key asset for their investment strategy.
Crypto analyst Miles Deutscher emphasized the critical role of retail investors in sustaining the bull market in cryptocurrencies.
Mark Zuckerberg, CEO of Meta, has accused the FBI of pressuring the company to censor credible reporting on then-presidential candidate Joe Biden in 2020.
In a recent social media update, Vitalik Buterin, co-founder of Ethereum, addressed several pressing technological risks.
A cryptocurrency whale fell victim to a phishing attack, losing $55 million in DAI stablecoins.