Metaplanet is raising $137 million to pay down debt and buy even more Bitcoin

What to know

• Metaplanet is set to raise up to 21 billion yen ($137 million) through the issuance of new shares and a series of stock acquisition rights via a third-party allotment.
• The Tokyo-based bitcoin (BTC) treasury company will issue 24.53 million new common shares at 499 yen per share.
• Metaplanet has approximately $280 million worth of debt outstanding, according to its dashboard.

Metaplanet is set to raise up to 21 billion yen ($137 million) to fuel its aggressive bitcoin buying spree and pay down debt.

The Tokyo-based firm will generate the funds through a sale of new shares and stock warrants aimed at a group of select investors.

Metaplanet will issue 24.53 million new common shares at 499 yen per share, around 5% above the prior close, raising approximately 12.24 billion yen in upfront proceeds.

The company's shares closed at 456 yen, 4% lower on the day, reflecting short-term dilution concerns despite the premium pricing.

The capital raise is structured as a third-party allotment, meaning the securities are placed directly with specific investors rather than being sold to the general public on the open market.

Each new share is accompanied by 0.65 stock acquisition rights, equating to 15.94 million potential shares and 65% warrant coverage. The warrants have a fixed exercise price of 547 yen and a one-year exercise period. If fully exercised, they would generate up to 8.9 billion yen in additional proceeds. These are fixed strike warrants, not moving strike style, limiting variable dilution.

Of the upfront capital, 5.2 billion yen is allocated to partial repayment of existing debt.

Metaplanet has approximately $280 million worth of debt outstanding, according to its dashboard. The remaining proceeds are expected to support further bitcoin accumulation and general corporate purposes.

The company currently holds 35,102 BTC, the fourth largest of any publicly traded company.