Metaplanet, a Japanese company focusing on Bitcoin accumulation, has received the green light from shareholders to revise its capital structure, thus clarifying its future funding route for acquiring more Bitcoin.
During a special meeting held on Monday, investors approved changes that will raise the number of authorized shares to 2.7 billion. The company also introduced a new dual-class preferred equity system aimed at attracting diverse investors while keeping control with current shareholders.
With Class A stocks offering fixed dividends, they serve as a reliable option for those seeking steady income. On the other hand, Class B stocks are riskier, but they come with the possibility of conversion into common stock. If Metaplanet’s Bitcoin strategy pays off, this could mean substantial growth for those investors.
The introduction of this new stock class is intended as a “defensive mechanism.” It protects regular shareholders from severe dilution and has the potential to release around 555 billion yen (approximately $3.7 billion) for funding.
Metaplanet moves closer to its Bitcoin target
Back on August 1, Metaplanet revealed its goal to raise $3.7 billion to help acquire 210,000 Bitcoin by the end of 2027.
In recent discussions, the board decided to offer new shares through international products, clearing the way for further shareholder meetings. This could be a significant governance challenge for the company.
While shareholders have approved the proposal, the board still must finalize specific terms for the issuance. Additionally, Metaplanet needs to prepare a detailed registration statement for Japanese authorities.
The main hurdle in Metaplanet’s fundraising efforts is ensuring that real investors can achieve the targeted potential salary boost of $3.7 billion.
This move comes at a time when stock prices have taken a hit. According to Google Finance data, as of Tuesday, Metaplanet’s stock was trading at around $5.74, reflecting a 54% drop from its peak in June.
Metaplanet ranks as one of the largest corporate Bitcoin holders
As of Tuesday, Metaplanet stands as the sixth largest holder of Bitcoin among corporations globally. The company added 1,009 BTC on Monday for approximately $112 million.
This brings its total holdings to about 20,000 Bitcoin, valued at roughly $2.2 billion based on current market prices.
