- Japanese firm Metaplanet has received shareholder approval to restructure its capital, a move designed to raise up to US$3.7 billion in new funding to expand its Bitcoin holdings.
- The new capital structure includes a dual-class preferred stock system, with Class A shares for fixed dividends and Class B shares convertible into common stock, a measure the company calls a “defensive measure” against dilution.
- On Monday, the company added 1,009 BTC to its balance sheet, bringing its total reserves to 20,000 BTC, making it the sixth-largest corporate Bitcoin holder globally.
Metaplanet has secured shareholder approval to restructure its capital base that will allow the firm to secure multi-billion-dollar fundraising aimed at, of course, expanding its Bitcoin (BTC) reserves.
At a general meeting held on Monday, Metaplanet investors voted to increase authorised shares to 2.7 billion and introduce a dual-class preferred stock structure. This new setup splits into Class A, offering fixed dividends for income-seeking investors, and Class B, which can be converted into common stock for potential upside if the company’s Bitcoin strategy delivers.
The firm’s management described the change as a “defensive measure” to protect existing shareholders from dilution while enabling as much as ¥555B (AU$5.6B) in possible fundraising. The plan, first outlined on Aug. 1, targets the purchase of 210,000 BTC by 2027.
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While the framework has passed, issuance terms still require board approval and regulatory filings in Japan. Moreover, the company’s main challenge will be securing investor demand sufficient to reach the maximum US$3.7 billion (AU$5.6 billion) target.
On Monday, Metaplanet bought 1,009 BTC for about US$112M (AU$170M), lifting reserves to 20,000 BTC worth roughly US$2.2B (AU$3.4B). That places it as the sixth-largest corporate Bitcoin holder globally, according to data from BitcoinTreasuries.net. It’s worth noting that the firm went from a small-cap to a mid-cap in Japan’s FTSE index.
But the company’s share is showing weakening signs, Metaplanet stock closed Tuesday at US$5.87 (AU$8), down 15% in the last month, according to Google Finance.
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