Metaplanet to invest $58M in Bitcoin amid Japanese market rebound, calls it the ‘apex monetary asset’

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Metaplanet, a Japanese investment and consulting firm which has been touted as Asia’s version of MicroStrategy, has announced plans to invest approximately 8.5 billion yen ($58.76 million) in Bitcoin through a stock acquisition rights offering to shareholders. The move comes as part of a larger fundraising effort totaling around 10 billion yen ($69.13 million).

The company’s Board of Directors approved the gratis allotment of its 11th series of stock acquisition rights to all common shareholders. The rights will be distributed to shareholders of record as of September 5, with the allotment taking effect from September 6 onwards. Shareholders will receive one stock acquisition right for each share held, with an exercise price of 555 yen per right.

Exercise period and tax implications

The exercise period for general investors runs from September 6 to October 15, 2024, after which unexercised rights will be acquired by the company. These rights will not be listed or tradable on exchanges. Foreign shareholders may face restrictions on exercising rights, and exercising rights for less than 100 shares results in holding fractional shares. The company expects no tax implications when rights are allocated or exercised.

Metaplanet’s decision to allocate the majority of raised funds to Bitcoin is based on the cryptocurrency’s potential for long-term appreciation and its ability to hedge against currency depreciation, particularly the yen. This investment strategy comes amid Japan’s challenging economic environment, characterized by high debt levels and prolonged negative real interest rates.

The company views Bitcoin as a strategic financial reserve asset that aligns with its vision of leveraging innovative financial strategies to enhance corporate value and growth. Metaplanet CEO Simon Gerovich stated that…