Metaplanet Inc. invests 8.5 billion yen in Bitcoin, increasing its crypto treasury amid Japan’s market instability.
During the company’s Board of Directors meeting, Metaplanet Inc. announced a gratis allotment of its 11th series of stock acquisition rights to all common shareholders.
The decision was taken to raise about 10 billion yen ($69.13 million), with 8.5 billion yen ($58.76 million) put aside for Bitcoin investment.
All common shareholders will receive stock acquisition rights on September 5, with the allotment becoming effective on September 6.
$58.76 million in Bitcoin investment
The firm’s decision to invest most of the funds raised in BTC is based on asset appreciation over time and the ability to hedge against currency depreciation.
The Bank of Japan raised rates on short-term government bonds on July 31, resulting in the Japanese stock market experiencing its most severe one-day drop since 1987.
The transition from 0% to 0.25% initiated a series of events that resulted in a significant sell-off of cryptocurrencies as BTC and Ether saw price drops of around 18 and 26%, respectively.
Metaplanet’s Crypto Expansion
On July 8, the publicly listed investment and consulting firm acquired $2.5 million BTC and 400 million yen, resulting in a total of 42.5 BTC.
Following the acquisition, Metaplanet held a total of 203.7 BTC, which was acquired at an average price of around 10 million yen, or $62,000 per BTC.
The company announced its entry into BTC in April, acquiring its first holdings for $6.5 million and adopting the asset as a treasury asset.
Metaplanet execs “zombie companies” pre-BTC
At the Bitcoin Conference in Nashville on July 25, executives from Metaplanet and Semler Scientific expressed their admiration for MicroStrategy’s BTC playbook.
Metaplanet’s CEO, Simon Gerovich, disclosed that his company showed characteristics typically affiliated with zombie companies before its strategic transition to Bitcoin.
Gerovich stated that the firm eventually “realized that Bitcoin is the apex monetary asset” and would be a “great” addition to the Japanese investment company’s treasury.
