Metaplanet Targets Billions in Fundraising with Dual-Class Stock for Bitcoin Buys
Metaplanet, recently got shareholder approval to change its capital structure.
Quick overview
- Metaplanet has received shareholder approval to implement a dual-class stock structure and increase its authorized shares to 2.7 billion.
- The company aims to raise billions for Bitcoin accumulation, having recently purchased 1,009 Bitcoin, bringing its total holdings to 20,000.
- Class A shares offer fixed dividends for stability, while Class B shares present higher risk with potential for conversion to common stock.
- Despite a significant drop in stock price, Metaplanet remains committed to its aggressive Bitcoin-first strategy.
Metaplanet made a strategy to issue dual-class stock and increase the number of shares, which will let it stick to its long-term plan to buy more Bitcoin.
Metaplanet, recently got shareholder approval to change its capital structure. This opens the door for billions in possible fundraising for its Bitcoin accumulation approach. Investors supported changes to the company’s articles of incorporation at an extraordinary general meeting on Monday. These changes would increase the number of authorized shares to 2.7 billion. It also set up a new dual-class preferred stock arrangement that would let Metaplanet get diverse kinds of investors while keeping control for current stockholders.
Class A shares would have a fixed dividend, which would give investors who want to make money more reliable returns. Class B shares are a riskier proposition, but they can be changed into common stock. If the company’s plan to buy more Bitcoin works, this approach could pay well.
Metaplanet calls the new share classes a “defensive mechanism” that keeps common stockholders from losing too much value. The corporation has the sixth-largest corporate Bitcoin treasury in the world. On Monday, it bought 1,009 Bitcoin for almost $112 million.
At current market pricing, this latest purchase brought Metaplanet’s total Bitcoin holdings to 20,000, which is worth around $2.2 billion. The company’s board decided to sell fresh shares through an international offering, which made it possible for the important shareholder approval that was given this week.
However, Metaplanet’s stock has dropped 54% from its June high of $12.75 to its current level of roughly $5.74, making it hard to raise money. The big decline in price could make it harder to get the billions of dollars needed for the biggest possible raises.
The company still needs to file formal registration statements with Japanese regulators and receive real commitments from investors for the $3.7 billion goal. Metaplanet’s business approach is similar to those of other Bitcoin treasury firms, although it is more aggressive in its goal of accumulating Bitcoin.
The dual-class structure lets new sorts of investors in while still giving current shareholders influence. Class A preferred shares give you stability because they pay you a predetermined amount of money, while Class B shares give you the chance to make more money if the Bitcoin accumulation method works.
Even though stocks have been having a hard time lately, Metaplanet is still sticking to its Bitcoin-first strategy. The company’s treasury strategy puts them among the biggest corporate Bitcoin holders in the world, behind only big names like MicroStrategy in terms of how much they have.
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