Metaplanet sells $66 million worth of shares to buy more BTC

What’s new? Japanese investment company Metaplanet has raised an additional 10 billion Japanese yen ($66,2 million) in capital by selling its shares. The funds will be used to buy bitcoins. 13 774 individual shareholders participated in the 11th series of securities sales. After that, Metaplanet’s share price fell by 5,85% overnight but is up 644% year-on-year.

Source: X.com

What else is known? Metaplanet attracted the crypto community’s attention in April this year when it first announced investments in bitcoin to create a BTC reserve in the context of a weakening national currency.

As a result, Metaplanet’s shares rose almost 400% in a month and a half and became the leader in terms of yield growth in the local market. The Tokyo Stock Exchange (TSE) had to suspend trading in these securities several times due to internal rules regarding maximum daily growth for shares with a price of less than 100 yen.

At the time of writing, Metaplanet’s shares are worth 1188 yen or $7,87 on the TSE. Their value has risen 560% since the beginning of the year.

In June, Metaplanet issued 1 billion yen ($6,26 million) in unsecured bonds to buy additional bitcoins. In July, it bought $4,7 million worth of bitcoins in four transactions, bringing the total amount of coins on its balance sheet to 246 BTC.

In September, the company’s CEO Simon Gerovich said that Metaplanet would continue to increase the number of BTC per share for the sake of long-term shareholder value.

In October, Metaplanet made two more bitcoin purchases, their number on the balance sheet increased to 855,5, worth $57,2 million at the current exchange rate.

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The community noted a direct link between bitcoin investments and the growth of Metaplanet’s share price. Michael Saylor’s MicroStrategy, a US-based analytics software developer, has a similar strategy. It has been investing in bitcoin since 2020 and is currently the largest holder of the asset on its balance sheet among public companies: 252 220 coins worth $17 billion.

Earlier, the leader of the Japanese DPP party Yuichiro Tamaki, if elected, promised to reduce the tax on cryptocurrency profits to 20%. Now for individuals it varies in the range of 15-55%. Legal entities pay a fixed rate of 30% on assets, even if they have not received a profit from the sale.