Metaplanet Seeks $150M Fundraise to Expand Bitcoin Holdings

Japanese-based company Metaplanet has announced plans to raise up to $150 million. The company revealed that most of this funding will be used to buy more Bitcoin (BTC), and support its operational needs. 

The company is taking this step even though the Bitcoin market is currently very unpredictable, with recent price drops creating both challenges and opportunities for long-term investors.

Issuance of Class B Preferred Shares

Announced on November 20, Metaplanet plans to issue new Class B Preferred Shares, a special type of share, to its investors to raise the planned funds. 

The company revealed that it had passed a resolution to offer these special shares and to even sell some of it to foreign investors. However, before this can happen, shareholders of the company will vote in December to approve the plan. 

The company says this type of share protects current shareholders because it limits the chance of their existing shares losing value. These new shares will pay regular dividends every three months: in March, June, September, and December. 

The dividend amount will be linked to Japan’s standard interest rate (JPY TONA) plus a fixed extra amount. This gives investors predictable returns, making the shares more attractive while supporting the company’s Bitcoin-focused strategy.

Metaplanet to Cancel Old Shares, Plans New Listing

In addition to funding Bitcoin purchases, Metaplanet will use part of the proceeds to retire certain stock acquisition rights from previous funding rounds. Specifically, the 28th, 29th, and 32nd series rights will be canceled. 

Metaplanet says this move is aimed at stabilizing the capital structure and aligning long-term shareholder interests. 

Furthermore, the company indicated that it may seek a listing for the Class B Preferred Shares on the Tokyo Stock Exchange. However, Metaplanet noted that listing approval is not guaranteed.

Metaplanet Clarifies It Is Different from Bitcoin ETFs

In a recent statement, CEO Simon Gerovich clarified an important point for investors and the public. Metaplanet is often compared to Bitcoin Exchange Traded Funds (ETFs). ETFs are investment funds that allow people to buy Bitcoin indirectly through the stock market. 

However, Gerovich explained that Metaplanet operates differently from an ETF. The company buys Bitcoin directly for its own treasury and holds it as part of a long-term investment strategy rather than managing it for outside investors.

The company believes that buying Bitcoin regularly, even when prices fall, is important for its long-term financial plan. It sees the flagship crypto is a better protection against inflation and losing value than traditional assets like cash or bonds. 

The company follows a similar approach to Michael Saylor’s investment strategy, which also continues to buy Bitcoin during market downturns.