MetaPlanet, a company listed on the Tokyo Stock Exchange and renowned for its ongoing Bitcoin acquisitions, has announced a $68 million fundraising initiative primarily aimed at purchasing more Bitcoin.
Discover the details of this fundraising structure, the planned allocation of funds, and how it aligns with MetaPlanet's long-term growth strategy.
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MetaPlanet's Announcement of Fundraising for Bitcoin Purchases
MetaPlanet, a Tokyo Stock Exchange-listed company known for its continuous Bitcoin (BTC) acquisitions, announced on August 6, 2024, that it will conduct a $68 million fundraising aimed primarily at purchasing more Bitcoin.
The fundraising will be conducted by offering all common shareholders the right to acquire new shares for free. Shareholders will receive one warrant for each common share they hold, allowing them to decide whether or not to exercise this right.
These warrants will be allocated to all common shareholders free of charge on September 5, 2024, with an exercise price of $3.8 per warrant. To exercise this right, shareholders must submit an exercise application to MetaPlanet and make the necessary payment by the deadline of October 15, 2024.
The majority of the raised funds, amounting to $57.5 million, are planned to be strategically allocated for purchasing Bitcoin. Despite recent significant declines in Bitcoin's price, MetaPlanet believes in the potential for long-term appreciation.
This decision is based on thorough analysis, suggesting that Bitcoin could rise substantially in the long run and serve as a hedge against currency devaluation, particularly the weakening of the yen.
Alignment with MetaPlanet's Long-term Growth Strategy
Holding Bitcoin as a core asset aligns with MetaPlanet's long-term growth strategy. It is expected to significantly enhance the company's profitability and corporate value.
The total funds to be raised through the exercise of these warrants are estimated at approximately $68 million, which will be allocated as follows:
| Specific Use | Amount |
|---|---|
| Bond Redemption | $6.8 million |
| Bitcoin Purchase | $57.5 million |
| Working Capital | $3.4 million |
| Total | $68 million |
At the end of last month, MetaPlanet introduced the balance verification service "Hoseki Verified" provided by Hoseki, aimed at enhancing transparency regarding its Bitcoin holdings. This allows real-time verification of the company's Bitcoin balance.
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