Metaplanet’s Desperate Gambit: 385M Shares for More Bitcoin 🤑

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Metaplanet, the erstwhile Japanese hospitality and real estate concern, now rebranded as a Bitcoin treasury company, announced on Tuesday a rather audacious plan to issue 385 million new shares. This move, one might say, is a bold stroke of financial acumen-or perhaps a desperate bid to stay afloat in the choppy waters of cryptocurrency. 🚢

The shares, priced at 553 yen ($3.75) each, will be offered internationally, a clear indication that the company is looking beyond its home shores for salvation. The total haul is expected to reach a staggering 212.9 billion yen ($1.44 billion). At this price, the shares represent a 9.9% discount to Metaplanet’s Tuesday closing price of 614 yen, a gesture of goodwill to potential buyers-or a sign of desperation, depending on one’s perspective. 🤷‍♂️

The payment date is set for September 16th, with the new shares to be credited to investors the following day. It’s a straightforward equity offering, not a bond issuance, which means no coupon rate-just a fresh batch of shares to dilute the existing shareholders’ stake. 🎉

Metaplanet plans to use the proceeds to purchase additional Bitcoin (BTC) between September and October, ostensibly as a hedge against the Japanese yen’s continued depreciation. The company also intends to expand its Bitcoin income-generating business, which, up until now, has primarily involved trading BTC options. A noble endeavor, indeed, but one that leaves one wondering about the wisdom of such a concentrated bet. 🤔

This move comes on the heels of a series of Bitcoin acquisitions that have catapulted Metaplanet into the ranks of the world’s largest public BTC holders, with a reported 20,137 BTC on its balance sheet. Though still officially classified as a hotel operator, Metaplanet has been gradually pivoting towards digital assets for over a year. The company unveiled its Bitcoin treasury strategy in 2024 as a hedge against inflation, negative interest rates, and the long-term effects of Japan’s national debt. Since then, it has repeatedly raised capital to acquire BTC, a decision that has come at the cost of increased shareholder dilution. 💸

Despite the company’s stock surging more than 150% over the past year, thanks to the fervor surrounding its Bitcoin strategy, shares traded in Japan have plummeted nearly 39% in the past month. This decline stands in stark contrast to the 1.7% gain in Japan’s benchmark Nikkei Index over the same period. 📉

Bitcoin Treasury Firms Face Mounting Risks

After an initial wave of euphoria, Metaplanet’s Bitcoin strategy is beginning to show signs of wear and tear. According to Bloomberg Law, the once-promising “flywheel” effect is losing momentum, forcing the company to seek fresh funding sources, particularly from global markets. This latest share issuance is a testament to that urgency. ⏳

Analysts warn that the narrowing premium gap-a measure of the difference between a Bitcoin treasury firm’s share price and its net asset value (NAV)-could become a significant source of volatility. As NYDIG’s global head of research, Greg Cipolaro, points out, this spread has recently compressed, adding another layer of complexity to the already precarious situation. 🤦‍♂️

Nevertheless, the strategy continues to attract converts, with dozens of companies pivoting towards digital asset treasury models. Public companies now collectively hold more than 1 million BTC, and some are venturing into other altcoins like Ether (ETH) and Solana (SOL). Whether this trend will prove to be a wise investment or a fool’s errand remains to be seen. 🤞

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2025-09-10 01:05