Metaplanet Inc to Issue Stock Rights and Invest Almost $60 Million in Bitcoin
07.08.2024 10:30 1 min. read Alexander Stefanov
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.
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