Japanese Firm Metaplanet Plans Massive $3.7B Bitcoin Shopping Spree
€ Metaplanet plans to raise $3.7 billion through perpetual preferred shares to fund its aggressive Bitcoin acquisition strategy
€ Japanese investment firm targets acquiring 210,000 Bitcoin by 2027, aiming to build one of the world’s largest corporate Bitcoin treasuries
The Metaplanet, a Japanese investment company, has announced a grand plan to issue perpetual preferred shares worth $3.7 billion. The financing program is expected to propel the aggressive Bitcoin buy-up program of the firm to a greater extent. This proposal will be voted on by shareholders in an Extraordinary General Meeting that will take place in the near future. The action shows that Metaplanet is determined to create one of the biggest corporate Bitcoin treasuries in the world.
Strategic Bitcoin Holdings Target Set for 2027
The funding proposal of Metaplanet involves the issuance of two different classes of perpetual preferred stock to provide the greatest flexibility. Class A shares will be non-convertible, and Class B shares will have conversion options to investors. The Japanese company aims to acquire 210,000 Bitcoin by 2027, which is an incredibly ambitious corporate policy. The funding round was announced by the CEO, Simon Gerovich, via social media, highlighting the Bitcoin-centred vision of the company.
This comes after Metaplanet recently purchased 780 Bitcoin worth about $92.5 million in the previous month. This acquisition increased the total Bitcoin holdings of the company to 17,132 BTC, which is worth $1.73 billion. The company is now one of the biggest publicly traded companies that holds Bitcoin in the world, beating Tesla. Nevertheless, the stock price of Metaplanet dropped by 7% after the announcement, and it is currently trading at 1,063 yen.
The use of perpetual preferred shares allows strategic benefits that are well understood, including fixed dividends, priority for preferred holders over common stock holders, and the benefits of issuing permanent capital without a maturity date, which affords the company with stable funding to carry out its operations for the long run. Furthermore, it mitigates dilution to existing common shareholders and attracts investors seeking fixed income. Therefore, Metaplanet can purchase Bitcoin without relying on its operational cash flows, which fluctuate and have been declining.
Regardless of the stock price fluctuation in the short term, Metaplanet generated a 115% stock price increase over the last six months. The company’s Bitcoin acquisition strategy creates interest with investors because Metaplanet is positioning itself as a major corporate buyer of cryptocurrency to meet the demand of interested owners.
What will be really interesting will be to see if shareholders approve this plan consideration for funding for Bitcoin purchase through Metaplanet’s preferred equity issuing. If successful, it will help Metaplanet establish itself as a leading Bitcoin treasury company in Asia as the market continues to grow.
#ProjectCrypto #MarketPullback $BTC
€ Japanese investment firm targets acquiring 210,000 Bitcoin by 2027, aiming to build one of the world’s largest corporate Bitcoin treasuries
The Metaplanet, a Japanese investment company, has announced a grand plan to issue perpetual preferred shares worth $3.7 billion. The financing program is expected to propel the aggressive Bitcoin buy-up program of the firm to a greater extent. This proposal will be voted on by shareholders in an Extraordinary General Meeting that will take place in the near future. The action shows that Metaplanet is determined to create one of the biggest corporate Bitcoin treasuries in the world.
Strategic Bitcoin Holdings Target Set for 2027
The funding proposal of Metaplanet involves the issuance of two different classes of perpetual preferred stock to provide the greatest flexibility. Class A shares will be non-convertible, and Class B shares will have conversion options to investors. The Japanese company aims to acquire 210,000 Bitcoin by 2027, which is an incredibly ambitious corporate policy. The funding round was announced by the CEO, Simon Gerovich, via social media, highlighting the Bitcoin-centred vision of the company.
This comes after Metaplanet recently purchased 780 Bitcoin worth about $92.5 million in the previous month. This acquisition increased the total Bitcoin holdings of the company to 17,132 BTC, which is worth $1.73 billion. The company is now one of the biggest publicly traded companies that holds Bitcoin in the world, beating Tesla. Nevertheless, the stock price of Metaplanet dropped by 7% after the announcement, and it is currently trading at 1,063 yen.
The use of perpetual preferred shares allows strategic benefits that are well understood, including fixed dividends, priority for preferred holders over common stock holders, and the benefits of issuing permanent capital without a maturity date, which affords the company with stable funding to carry out its operations for the long run. Furthermore, it mitigates dilution to existing common shareholders and attracts investors seeking fixed income. Therefore, Metaplanet can purchase Bitcoin without relying on its operational cash flows, which fluctuate and have been declining.
Regardless of the stock price fluctuation in the short term, Metaplanet generated a 115% stock price increase over the last six months. The company’s Bitcoin acquisition strategy creates interest with investors because Metaplanet is positioning itself as a major corporate buyer of cryptocurrency to meet the demand of interested owners.
What will be really interesting will be to see if shareholders approve this plan consideration for funding for Bitcoin purchase through Metaplanet’s preferred equity issuing. If successful, it will help Metaplanet establish itself as a leading Bitcoin treasury company in Asia as the market continues to grow.
#ProjectCrypto #MarketPullback $BTC
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