Metaplanet, a Japanese firm, has significantly increased its Bitcoin holdings, acquiring 1,009 Bitcoin (BTC) at a cost of roughly $112 million. This boosts their total Bitcoin treasury to an impressive 20,000 BTC. This move follows shareholder approval for an ambitious strategy to add $2.8 billion worth of Bitcoin by 2027.
The publicly traded Tokyo-based entity revealed the purchase on September 1st, reporting an average acquisition price of 16.3 million yen (approximately $110,720) per Bitcoin. The capital expansion plan was officially sanctioned during a special meeting of Metaplanet’s shareholders.
This latest acquisition elevates Metaplanet’s Bitcoin holdings to a value exceeding $2.1 billion, solidifying its position as the largest corporate Bitcoin holder in Asia. Furthermore, the company now ranks as the sixth largest BTC holder worldwide, surpassing Riot Platforms in total Bitcoin assets.
Shareholders OK Multi-Billion Dollar Bitcoin Strategy
At the Extraordinary General Meeting (EGM), CEO Simon Gerovich detailed the company’s objective to accumulate 210,000 BTC by the year 2027, representing around 1% of the total Bitcoin supply that will ever exist.
The proposed method for achieving this involves issuing up to 555 million preferred shares, with the goal of generating ¥555 billion (equivalent to approximately $3.8 billion). These funds are explicitly earmarked for acquiring additional Bitcoin.
Eric Trump was present at the meeting, serving as a strategic advisor to Metaplanet. He engaged in a discussion with CEO Gerovich, during which he praised Gerovich’s leadership. Trump stated that Gerovich is “one of the most honest people I’ve ever met in my entire life” and emphasized the “winning combination” of strong leadership and Bitcoin adoption.
Gerovich then posed a question to the assembly of over 3,000 attendees, seeking their approval to amend the company’s foundational documents, effectively enabling the issuance of the preferred shares. The shareholders voted in favor of this proposal.
Introducing Two Share Classes
The approved plan for preferred shares introduces two distinct classes of perpetual equity offerings. Class A shares will offer a 5% yield, designed to be competitive with traditional fixed-income investments.
Class B shares, on the other hand, present a higher level of risk but incorporate options for conversion into common stock.
Gerovich emphasized Japan’s advantageous position for Bitcoin-centric financing, noting that the country’s remarkably low interest rates among the G7 nations represent “our hidden superpower.”
The preferred shares are limited to a maximum of 25% of the company’s Bitcoin net asset value.
This substantial acquisition coincides with Metaplanet’s announcement of profits for the second quarter, reaching 11.1 billion yen (equivalent to $75.1 million). This represents a significant 41% increase compared to the previous quarter.
The company’s Bitcoin income generation activities, primarily derived from the sale of put options, contributed 1.9 billion yen (approximately $12.9 million) in sales revenue during the same quarter.
Metaplanet recently achieved an upgrade to mid-cap status following FTSE Russell’s September review, securing inclusion in both the FTSE Japan Index and the FTSE All-World Index.
The ambitious plan to accumulate 210,000 BTC would place Metaplanet alongside companies such as MicroStrategy, as one of the few entities holding at least 1% of the total Bitcoin supply.