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The Japanese bitcoin treasury firm structured the financing with premium-priced shares and warrants that could unlock up to $531 million.
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What to know:
- Metaplanet secured 40.8 billion yen ($255 million) via a share placement set at a 2% premium, along with warrants that carry a 10% premium strike, potentially adding another 44.5 billion yen if exercised.
- The firm has introduced a new warrant framework linked to net asset value and has paused older warrants representing up to 210 million shares to mitigate dilution and emphasize funding for further bitcoin acquisitions.
Japanese bitcoin treasury firm Metaplanet (3350) announced it raised approximately 40.8 billion yen ($255 million) from international institutional investors through a placement of fresh shares, part of a financing arrangement that could yield up to $531 million in total funding to bolster its bitcoin accumulation strategy.
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The company, listed in Tokyo, set the price of the new shares at a 2% premium over the market rate. This placement was coupled with fixed-strike warrants that feature a 10% premium, which could produce an additional 44.5 billion yen if exercised.
Additionally, the company has launched a new series of moving strike warrants, incorporating what it refers to as the first mNAV (multiple to net asset value) clause associated with stock acquisition rights.
This mechanism permits the warrants to be exercised only when the company’s shares trade at a minimum of 1.01 times its adjusted net asset value, a benchmark comparing the firm’s market capitalization with the value of its bitcoin assets. Metaplanet indicated that this structure guarantees any new share issuance enhances bitcoin holdings per share.
To control dilution, the company has also suspended the exercising of previously issued warrants representing up to 210 million shares, favoring the new structure instead.
Metaplanet intends to utilize the capital primarily to increase its bitcoin reserves as it strives towards its long-term objective of holding 210,000 BTC.
Metaplanet’s shares rose by 5% on Monday as bitcoin surpassed $73,000. The firm ranks as the world’s fourth-largest corporate bitcoin treasury, possessing 35,102 BTC.
