Metaplanet has acquired 1,009 Bitcoin (BTC) for around $112 million and has increased the total Japanese company holdings to 20,000 BTC amid shareholder approvals for an ambitious plan to add $2.8 billion worth of Bitcoin to the Ministry of Finance by 2027.
The Tokyo List company announced its purchase on September 1st, paying an average price of 16.3 million yen ($110,720) per Bitcoin. At Metaplanet’s extraordinary general meeting, the capital expansion strategy was voted.
The acquisition has solidified Metaplanet’s Bitcoin Treasury value of over $2.1 billion, solidifying its position as Asia’s largest corporate Bitcoin holder. Additionally, it has made the company the sixth largest BTC holder in the world, surpassing the riot platform.
EGM has approved a multi-billion dollar strategy
During the shareholders meeting, CEO Simon Gerovich outlined the company’s plans to acquire 210,000 BTC by 2027, accounting for around 1% of its total Bitcoin supply.
This strategy includes issuing up to 555 million shares, and could raise 555 billion yen ($3.8 billion) specifically for the purchase of Bitcoin.
Eric Trump attended the meeting as a strategic advisor to Metaplanet and joined a fireplace chat with Jerovic. Trump praised the CEO’s leadership, and said that Gerovich represents “one of the most honest people I’ve ever met in my entire life,” calling the combination of strong leadership and Bitcoin a “winning combination.”
Gerovich then asked more than 3,000 participants whether they would approve revisions to the company’s founding article to allow for the issuance of consented preferred stock.
Two classes of stocks
The approved preferred stock plan includes two classes of permanent stock offerings. Class A stock offers a 5% yield designed to compete with traditional fixed income products.
Class B stocks, on the other hand, take higher risk, but include conversion options to common stock.
Gerovich highlighted Japan’s unique stance on Bitcoin-backed funding, noting that the country’s lowest interest rates represent “our hidden superpower” among the G7 countries.
Preferred shares are limited to 25% of the company’s Bitcoin net asset value.
The acquisition was as Metaplanet reached 11.1 billion yen ($75.5 million) in second quarter profits, representing a 41% increase from the 41% quarter.
The company’s Bitcoin revenue generation business contributed 1.9 billion yen ($12.9 million) of sales revenue during the quarter, primarily through the sale of put options.
Metaplanet recently upgraded to Mid-CAP status in a September review of FTSE Russell, earning inclusion in both the FTSE Japan Index and the FTSE All-World Index.
The plan to reach 210,000 BTC in the Treasury will place Metaplanet along with the strategy on the list of companies that hold at least 1% of their Bitcoin supply.