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

Japan’s apical Bitcoin treasury firm, Metaplanet, conscionable acquired 1,009 BTC, reaching 20,000 BTC of holdings conscionable arsenic the steadfast issues millions of caller shares.

According to a Monday Metaplanet announcement, the steadfast acquired 1,009 BTC and reached 20,000 BTC for 16.479 cardinal yen (nearly $112 million). On the aforesaid day, the steadfast announced the issuance of 11.5 cardinal caller shares past week, pursuing an investor’s workout of warrants to get stock.

According to BitcoinTreasuries.net data, Metaplanet is presently the sixth biggest and apical Japanese Bitcoin treasury. The steadfast paid an mean terms of $102,607 per Bitcoin, which results successful a 6.75% nett compared to Bitcoin’s terms astatine the clip of writing.

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

The capitalist successful question, Evo Fund, has acquired 10 cardinal shares astatine $5.67 and 1.5 cardinal astatine conscionable nether $6 for a full of astir $65.73 million. Metaplanet spends those proceeds to concern the aboriginal redemption of astir $20.4 cardinal worthy of antecedently issued bonds. Evo Fund inactive has rights to an further 34.5 cardinal shares.

Source: Metaplanet

Related: Dutch crypto steadfast Amdax targets 1% Bitcoin proviso with $23M treasury launch

Metaplanet reacts to marketplace pressure

The announcement besides comes arsenic Metaplanet faces mounting pressure, with its stock terms tumbling, threatening the fundraising exemplary it has utilized to physique its Bitcoin treasury. The firm’s banal has dropped 54% since mid-June, contempt Bitcoin gaining astir 2% during the aforesaid period.

Analysts highlighted that falling banal prices marque exercising warrants for Evo Fund little attractive, squeezing Metaplanet’s liquidity and reducing its capableness to get much Bitcoin. Still, the firm’s strategy appears to beryllium evolving and adapting to this caller situation.

Last week, Metaplanet announced plans to raise approximately 130.3 cardinal yen ($880 million) done a nationalist stock offering successful overseas markets. Today, the firm’s shareholders volition ballot connected whether to o.k. the issuance of up to 555 cardinal preferred shares that could rise arsenic overmuch arsenic 555 cardinal yen ($3.7 billion).

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

Bitcoin treasuries are harmless bets

After Strategy — erstwhile known arsenic MicroStrategy — devised the firm Bitcoin treasury strategy and adopted it with large success, galore companies decided to travel successful its footsteps. Still, this strategy is not guaranteed to enactment successful the agelong term.

In fact, respective Bitcoin treasuries appear to beryllium already successful heavy trouble. In fact, Bitcoin treasuries tin neglect erstwhile Bitcoin’s terms drops and their banal nett plus worth premiums disappear, shutting down backing opportunities. Loans oregon borderline calls whitethorn past crook those companies into forced Bitcoin sellers.

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