Metaplanet Aims for 210K BTC with New $137M Capital Raise

Metaplanet is stepping up its Bitcoin strategy with a fresh $137 million capital raise to pay down debt and accumulate more BTC.

Key Takeaways

• Metaplanet is raising up to 21 billion yen (about $137 million) through a third-party share and warrant issuance.
• The funds will be used to repay debt and significantly increase its Bitcoin holdings, targeting 210,000 BTC by 2027.
• The company is issuing 24.53 million new shares at a premium, plus 15.94 million potential shares via fixed-strike warrants.
• Most of the capital will be allocated for Bitcoin purchases, with some supporting its BTC income generation business.

What Happened?

Metaplanet, a Tokyo-listed firm known for its aggressive Bitcoin accumulation, has announced a capital raise of up to 21 billion yen, or around $137 million. The move is part of its long-term plan to become one of the largest corporate holders of Bitcoin, with a target of owning 210,000 BTC by 2027.

Details of the Capital Raise

Metaplanet approved the financing structure during a board meeting on January 29. The plan involves issuing 24.53 million new common shares at 499 yen per share, which is about 5% higher than the previous day’s closing price of 456 yen. This will raise approximately 12.24 billion yen ($80 million) upfront.

Each share will come with 0.65 stock acquisition rights, equating to 15.94 million potential new shares. These warrants are fixed-strike, priced at 547 yen per share, and are exercisable for one year starting February 16. If fully exercised, they would raise an additional 8.9 billion yen ($57 million).

The issuance is being carried out through a third-party allotment, targeting a specific group of select investors, many of whom are overseas. This method avoids a public offering and gives Metaplanet more control over the terms.

According to Dylan LeClair, Metaplanet’s Head of Bitcoin Strategy, the structure allows the firm to raise funds at a premium while leveraging its share price volatility. He explained:

Allocation of Funds

The capital will be used across three main areas:

• Bitcoin Purchases: About 14 billion yen ($91 million) is earmarked for staged Bitcoin acquisitions.
• Bitcoin Income Generation: Around 1.5 billion yen ($9.7 million) will fund income-generating activities such as options and derivatives.
• Debt Repayment: Approximately 5.2 billion yen ($33 million) will go toward reducing existing debt, which currently stands at around $280 million.

All Bitcoin-related activities will be managed through its subsidiary, Metaplanet Lightning Capital.

Long-Term Bitcoin Strategy

Metaplanet is modeling its Bitcoin strategy after U.S.-based Strategy (formerly MicroStrategy), which holds more than 700,000 BTC. With current holdings of 35,102 BTC, Metaplanet ranks fourth among public companies. The company aims to reach 210,000 BTC by 2027, about 1% of the total Bitcoin supply.

Despite recent market volatility with BTC trading near $87,800 at the time of the announcement. Metaplanet remains bullish on Bitcoin’s long-term strength, especially relative to the Japanese yen. The company stated that Bitcoin purchases will be spread over time, not executed in a single tranche.

Interestingly, this raise comes shortly after Metaplanet reported a 104.6 billion yen ($680 million) Bitcoin-related impairment due to market fluctuations. The company clarified that the loss was non-operational and had no impact on its cash flow.

CoinLaw’s Takeaway

In my experience watching how firms navigate crypto finance, Metaplanet’s play is bold but calculated. This isn’t just about stacking sats but it’s a strategic pivot that uses equity markets to convert fiat into a long-term Bitcoin treasury. What stands out is their confidence in Bitcoin’s future against the yen, and the clear structure behind their fundraising. I found their transparency refreshing, especially given their ambitious 210,000 BTC target. While risks remain, especially with dilution and price swings, Metaplanet is carving a unique path in the corporate Bitcoin landscape.

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