Metaplanet Seeks Fresh Capital to Bolster Bitcoin Strategy

Metaplanet JP3481200008

Japanese investment firm Metaplanet is returning to the market for new funding, reinforcing its aggressive Bitcoin acquisition strategy. This move comes shortly after the company reported a significant non-cash impairment charge on its cryptocurrency holdings, highlighting a period of strategic financial maneuvering.

The company's board has approved a private placement to raise up to 21 billion yen (approximately $137 million). The capital will be sourced through a combination of new share issuance and warrants.

The financing initiative is structured in two distinct tranches:
* The issuance of 24.53 million new common shares at a price of 499 yen per share, aimed at generating roughly 12.24 billion yen.
* The offering of 15.94 million warrants, each with an exercise price of 547 yen. If fully exercised, these could provide an additional 8.9 billion yen within one year.

Notably, the share issuance price was set at a 5% premium to the preceding closing price. Despite this, Metaplanet's stock closed Thursday's session at 456 yen, marking a decline of approximately 4%. Market analysts attributed the downward pressure primarily to investor concerns over potential equity dilution.

The company has outlined a clear timeline for the process: Allocation and payment are scheduled for February 13, while the warrant exercise period will commence on February 16 and remain open until February 15, 2027.

Allocation of Proceeds

According to the published plan, the raised capital is earmarked for three specific purposes:
* 14 billion yen is allocated for further Bitcoin accumulation.
* 5.2 billion yen is designated for the partial repayment of outstanding debt.
* 1.5 billion yen will fund Bitcoin yield-generation activities.

Impairment Charge Contrasts with Raised Operational Forecast

The capital raise follows closely on the heels of a recent financial disclosure. Just three days prior, Metaplanet reported an impairment loss on its Bitcoin holdings of approximately 104.6 billion yen for the 2025 fiscal year. This accounting adjustment flowed through to its bottom-line forecasts:
* The company now anticipates an ordinary loss of 98.56 billion yen.
* Its projected net loss stands at 76.63 billion yen.

Management emphasized that this represents a non-cash, book-value adjustment driven by period-end market prices, as the firm values its Bitcoin portfolio at fair market value based on the closing rate for each reporting period.

In a contrasting positive development, Metaplanet concurrently raised its operational guidance for 2025:
* Revenue is now forecast at 8.905 billion yen, up from a previous projection of 6.8 billion yen.
* The operating profit outlook was lifted to 6.287 billion yen, which the company states is a 33.8% increase over its earlier forecast.

The firm cited stronger-than-expected performance in its Bitcoin income business, which utilizes options and derivatives strategies, as the key driver behind the upgraded operational outlook.

Holdings, Targets, and Upcoming Catalysts

Metaplanet currently holds 35,102 BTC, positioning it among the world's largest publicly-traded corporate holders of Bitcoin. This marks a substantial increase from the 1,762 BTC it held at the end of 2024.

Looking ahead to the coming fiscal year, the company has set ambitious targets:
* Revenue: 16 billion yen
* Operating Profit: 11.4 billion yen

Notably, Metaplanet has refrained from providing a net profit forecast, citing the inherent difficulty in predicting future Bitcoin price movements.

Investors can expect several imminent milestones:
* February 13: Final allocation and payment for the capital increase.
* February 16: Start of the warrant exercise period and the publication of the full-year financial results for FY2025.