Super Planet revealed that it aims to raise 10.08 billion yen ($70 million) in funding, intending to increase the company’s investment in Bitcoin (BTC). The funds will be raised through the issuance of stock purchase rights to shareholders.
Metaplanet’s Strategic Bitcoin Investment Plan
Metaplanet plans to raise 8.5 billion yen to further bolster its holdings in Bitcoin. Through stock acquisition rights allocated on September 5, shareholders will have the opportunity to purchase company shares at 555 yen per share from September 6 to October 15. This strategy mirrors MicroStrategy’s approach in 2020, enabling Metaplanet to capitalize on current market trends favoring digital assets.
The company’s decision to allocate significant capital to Bitcoin and related industries stems from the belief in the bright future of digital currencies. Despite the current price drop, Metaplanet remains bullish on Bitcoin’s long-term value.
Expanding Bitcoin Holdings and Revenue Streams
With approximately 246 BTC valued at $13.4 million, Metaplanet’s new financing will significantly increase its Bitcoin holdings. The company anticipates that a rise in Bitcoin’s price will enhance its balance sheet and asset position.
In addition to increasing Bitcoin holdings, Metaplanet plans to explore business opportunities within the Bitcoin ecosystem. The company is also looking into engaging in covered call options on Bitcoin to generate additional income, providing a more stable revenue stream, even in volatile markets.
Furthermore, as Metaplanet exits declining legacy markets such as the restaurant industry, the company aims to pivot towards the hospitality sector catering to the Bitcoin audience. This strategic move targets a niche market while revitalizing a struggling industry.
Bitcoin as a Reliable Hedge Against Economic Turbulence
Metaplanet views Bitcoin as a valuable hedge, especially considering the depreciation of the yen against the US dollar. Amidst the volatility of traditional currencies, Bitcoin proves to be a reliable store of value during economic shifts.
The company’s strategic departure from certain traditional markets reflects broader industry shifts towards digital assets. As organizations adapt to evolving market trends, Metaplanet’s proactive approach aligns with its commitment to seizing new opportunities in the digital asset space.
Also read: Metaplanet partners with Hoseki to verify BTC holdings
