Metaplanet Bitcoin holding reaches 20,000 BTC, issues 11.5M shares

Japan’s top Bitcoin treasury firm, Metaplanet, just acquired 1,009 BTC, reaching 20,000 BTC of holdings just as the firm issues millions of new shares.

According to a Monday Metaplanet announcement, the firm acquired 1,009 BTC and reached 20,000 BTC for 16.479 billion yen (nearly $112 million). On the same day, the firm announced the issuance of 11.5 million new shares last week, following an investor’s exercise of warrants to acquire stock.

According to BitcoinTreasuries.net data, Metaplanet is currently the sixth biggest and top Japanese Bitcoin treasury. The firm paid an average price of $102,607 per Bitcoin, which results in a 6.75% profit compared to Bitcoin’s price at the time of writing.

Metaplanet’s Bitcoin holdings chart. Source: Bitcointreasuries.net

The investor in question, Evo Fund, has acquired 10 million shares at $5.67 and 1.5 million at just under $6 for a total of about $65.73 million. Metaplanet spends those proceeds to finance the early redemption of approximately $20.4 million worth of previously issued bonds. Evo Fund still has rights to an additional 34.5 million shares.

Source: Metaplanet

Related: Dutch crypto firm Amdax targets 1% Bitcoin supply with $23M treasury launch

Metaplanet reacts to market pressure

The announcement also comes as Metaplanet faces mounting pressure, with its share price tumbling, threatening the fundraising model it has used to build its Bitcoin treasury. The firm’s stock has dropped 54% since mid-June, despite Bitcoin gaining about 2% during the same period.

Analysts highlighted that falling stock prices make exercising warrants for Evo Fund less attractive, squeezing Metaplanet’s liquidity and reducing its capability to acquire more Bitcoin. Still, the firm’s strategy appears to be evolving and adapting to this new situation.

Last week, Metaplanet announced plans to raise approximately 130.3 billion yen ($880 million) through a public share offering in overseas markets. Today, the firm’s shareholders will vote on whether to approve the issuance of up to 555 million preferred shares that could raise as much as 555 billion yen ($3.7 billion).

Related: Bitcoin treasury firm Metaplanet graduates to FTSE Japan and All-World indexes

Bitcoin treasuries are safe bets

After Strategy — once known as MicroStrategy — devised the corporate Bitcoin treasury strategy and adopted it with great success, many companies decided to follow in its footsteps. Still, this strategy is not guaranteed to work in the long term.

In fact, several Bitcoin treasuries appear to be already in deep trouble. In fact, Bitcoin treasuries can fail when Bitcoin’s price drops and their stock net asset value premiums disappear, shutting down funding opportunities. Loans or margin calls may then turn those companies into forced Bitcoin sellers.

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