Metaplanet Seeks Fresh Capital for Bitcoin Strategy Amid Major Impairment Charge

Metaplanet JP3481200008

Japanese investment firm Metaplanet is navigating a complex financial landscape, announcing a significant capital raise shortly after reporting a substantial impairment on its Bitcoin holdings. The company aims to secure new funds to continue acquiring cryptocurrency while also reducing its debt, blending defensive balance sheet management with an aggressive growth strategy.

The company's board has approved the issuance of 24,529,000 new common shares at a price of 499 yen per share. This primary offering is expected to generate gross proceeds of approximately 12.24 billion yen (roughly 82 million US dollars).

In a parallel move, Metaplanet will issue 159,440 share purchase rights. Each right entitles the holder to acquire 100 common shares at an exercise price of 547 yen, which was set at 115% of the closing share price on the trading day preceding the board's decision. The allocation and payment for both the new shares and the rights are scheduled for February 13.

Should all rights be exercised in full, an additional 15,944,000 shares could enter the market, leading to potential dilution for existing shareholders. The company notes that the rights are structured as fixed-price instruments, meaning the dilution mechanism is not subject to variable market pricing but is tied to the predetermined exercise price. The total capital raised could be lower if the rights are not exercised within the specified window.

Allocation of Proceeds: Bitcoin, Debt, and Derivatives

According to its disclosures, Metaplanet has outlined a clear plan for the use of the newly raised capital:

• Approximately 14 billion yen (~91 million USD): Designated for further Bitcoin acquisitions between February 2026 and February 2027.
• Approximately 5.2 billion yen (~34 million USD): Allocated for the partial repayment of existing corporate debt.
• Approximately 1.5 billion yen (~10 million USD): Earmarked for expanding Bitcoin-related revenue-generating activities, which include implementing options strategies.

Context: A Substantial Impairment and Bullish Forecasts

This financing initiative comes just days after Metaplanet reported a non-cash impairment charge of 104.6 billion yen (about 680 million USD) on its Bitcoin treasury. The company classified this as a non-operating expense and stated it has no direct impact on cash flows or daily operations.

The impairment stems from the firm's rapid accumulation of Bitcoin. By the end of 2025, its holdings had ballooned to 35,102 BTC, a massive increase from the 1,762 BTC held a year prior. In the fourth quarter of 2025 alone, the company deployed 451 million USD to purchase more Bitcoin at an average price of 105,412 USD per coin.

Despite this significant accounting loss, Metaplanet has raised its financial forecasts for 2025:
* Revenue: Projected at 8.9 billion yen (around 57.8 million USD), a 31% increase over previous expectations.
* Operating Income: Expected to reach 6.3 billion yen, up 34%.

Looking further ahead, the company anticipates revenue of 16 billion yen and operating income of 11.4 billion yen for the 2026 fiscal year. It estimates that roughly 97.5% of its future revenue will be derived from Bitcoin-related activities.

The events of February 13 will determine the immediate influx of capital, setting the stage for Metaplanet's next phase of Bitcoin investment and debt reduction.