Japanese venture firm Metaplanet is looking to raise roughly $68 million (¥10 billion) through a gratis stock allotment. And the company has already disclosed that $59 million worth of the funds will be used to add to its Bitcoin treasury.
“A substantial majority of these funds, around ¥8.5 billion, will be used to purchase Bitcoin,” Dylan LeClair, the company’s Director of Bitcoin Strategy, said on Twitter. “This allocation aims to leverage Bitcoin’s potential for long-term appreciation and its ability to hedge against yen depreciation.”
The company, which calls itself the “Japanese MicroStrategy,” has already managed to stockpile 245.992 Bitcoin as of July 22, when it said that it had completed its 2024 goal of investing a total of $6.8 million (¥1 billion) into BTC. It first revealed its plan to invest in a Bitcoin treasury in April this year.
“By acquiring and holding Bitcoin as a reserve asset, the company aims to position itself as the leading publicly listed Bitcoin holding company in Japan,” LeClair added.
But how does a so-called “gratis” offering help the company raise money?
The “gratis” part of the name is a bit of a misnomer. Metaplanet, whose shares trade on the Tokyo Stock Exchange under the 3350 ticker, will charge shareholders a flat rate of $3.77 (¥555) per share that they redeem through the allotment.
That offer will be extended to the holders of at least 18,166,930 shares—which excludes 2,288 shares that the company has in its treasury. But because the redemption period won’t begin for another month, it could vary. All Metaplanet shareholders as of September 5 will be extended an offer to receive additional shares and have until October 15 to exercise it.
Any stock rights that aren’t exercised by October 15 will be allocated to the company at no cost. But Metaplanet “may then allocate these rights at fair value to specific investors approved the by Board of Directors,” the company said in its announcement.
The $3.77 exercise price represents a a significant discount. On Wednesday, the same day as the announcement, Metaplanet shares closed the day trading for $5.05 (¥743.00), marking a 15.5% gain from their previous close. At the time of writing, Metaplanet has a market capitalization of $93 million (¥13.5 billion).
