Metaplanet announced the allocation of 8.5 billion yen ($58.8 million) to bolster its bitcoin reserves. The public company will raise the necessary funds through an additional share issuance.
The issuance will amount to 10 billion yen ($69.1 million). All shareholders will have the right to purchase securities starting September 5, with distribution commencing on September 6.
The exercise price is set at 555 yen, representing a 13.7% discount to the current share price of 643 yen.
The decision comes amid volatility in the local stock market due to the significant strengthening of the national currency. The company aims to hedge against the depreciation of the yen and anticipates long-term growth in the value of the leading cryptocurrency.
According to BitcoinTreasuries, Metaplanet holds 246 bitcoins valued at $13.48 million, with an average purchase price of approximately $63,252 per coin. At the current price of $55,000, the firm’s “paper” loss is about 13%.
Earlier, ForkLog reported on the company’s acquisition of 20.38 BTC for $1.27 million.
Back in April, Metaplanet announced the conversion of treasury funds into digital gold.