Metaplanet Inc. Approves Class B Share Issuance
In a significant development for its financial trajectory, Metaplanet Inc., which is traded on the Tokyo Stock Exchange, has received approval from its board to issue newly minted Class B shares through a third-party allotment. This strategy aligns with the company’s recent shift toward operating as a Bitcoin treasury entity and is aimed at bolstering its long-term capital plan. Scheduled for execution on December 29, this share issuance is projected to generate approximately ¥21.2 billion (or $142 million) to fuel its investment strategies and Bitcoin acquisition initiatives.
The approval came during a board meeting held on November 20, where amendments pertaining to capital allocations and reserves were also sanctioned. With plans to increase its Bitcoin reserves and corporate valuation, Metaplanet is setting up a structured share release that aims to attract participation from institutional investors over the long haul.
Structure of the Share Issuance
The offering will involve 23.61 million Class B shares, each priced at ¥900, culminating in total proceeds of about ¥21.249 billion. These shares will be distributed to select investors under a third-party allotment mechanism. The company emphasized that all financial transactions related to this issuance should be finalized by December 29, 2025, utilizing international settlement systems for the shares.
The introduction of Class B shares is a strategic move designed specifically to support Metaplanet’s transition to a Bitcoin-centric corporate framework. This structure grants unique rights that aim to align investor interests with the company’s Bitcoin treasury goals. The current issuance comes on the heels of the expiration or cancellation of certain stock acquisition rights, such as those linked to the 2025 EVO FUND warrants, thereby clearing the market for this capital-raising endeavor.
Strategic Vision: Enhancing the Bitcoin Treasury
Redefining itself as a “Bitcoin treasury enterprise” since 2024, Metaplanet has dedicated its corporate reserves to the long-term acquisition of Bitcoin. The firm unveiled its “21 Million Plan,” followed by the “555 Million Plan,” underscoring its commitment to scaling its Bitcoin assets.
In light of market fluctuations and pressures, particularly those affecting Bitcoin mining-related stocks, Metaplanet has undertaken a thorough review of its financial structure. With its market value of Bitcoin-adjusted net asset value (MNAV) occasionally dipping below parity, management recognized the urgent need to fortify capital reserves to uphold shareholder value.
Consequently, Metaplanet opted to issue the Class B shares, considering this approach preferable to conventional debt options or further dilution through common stock. This decision aims to secure vital funding while enhancing the market’s understanding of its valuation framework and fostering improved long-term price discovery.
Allocation of Funds and Strategic Outlook
The proceeds from this share issuance will be directed towards augmenting Bitcoin holdings, implementing corporate investments, and advancing Bitcoin infrastructure that dovetails with the company’s treasury objectives. Moreover, this move positions Metaplanet for a potential future public offering involving the Class B shares, with management indicating that preparations for an additional listing will commence when market conditions are favorable.
Ultimately, the newly raised capital is expected to facilitate the sustainable execution of Metaplanet’s Bitcoin acquisition strategy, fortifying its financial stability and enabling growth prospects within both Japanese and global markets.
