Meta Planet, the firm on the Tokyo list, is aggressively collecting Bitcoin, facing a growing pressure as well as its share prices, which poses a risk to the fundraising model, which has been used globally to make corporate bitcoin’s largest treasures.
Despite the nearly 2 % increase in BitCoin (BTC) during the same period, the company’s stock has decreased by 54 % since mid -June. This reduction has put a pressure on a procedure depending on the rising prices of shares to unlock funds through an MS warrant issued by its main investor EVO Fund.
According to a Sunday report of Bloomberg, with a rapid decline in shares, the use of these warrants is no longer attractive to the EVO, squeezing the leukemia of Meta Planett and slowing its bitcoin acquisition strategy.
According to Bitcoinz.net, headed by Simon Girich, a former Goldman Sex trader, Meta Planted currently has 18,991 BTC, with the seventh largest public holder. The firm has the ambitions to increase its stack by 100,000 BTC and 210,000 BTC by 2027.
Related: Meta Planet, add about $ 100m to Bitcoin in the smart web treasury
Meta Planet refers to the overseas markets
With its “fly wheel” strategy, Gerich is turning to alternate fundraising. On Wednesday, Meta Planet announced plans to raise about 130 13.3 billion yen ($ 880 million) by offering public shares in overseas markets.
In addition, the shareholders will vote on Monday to approve the issuance of 555 million priority shares in Japan, which is a rare device in Japan, which can increase to 555 billion yen (7 3.7 billion).
In an interview with Bloomberg, Jerovich described the preferred shares as a “defensive procedure”, which allows capital infusion without reducing the common shareholders when stocks fall further. These shares, expect 6 % annual profits to be offered, and initially 25 % of the firm’s bitcoin holdings will be banned, it can appeal to Japanese investors, who are hungry for the sake.
Related: Meta Planet has intended to accumulate an additional 7 3.7b to buy BitCoin
Falling Bitcoin Premium Meta Planets Risk Strategy
However, analysts are cautious. “BitCoin premium is the one that will determine the success of the entire strategy,” said Eric Bonouett of Natics. The difference between the premium, the market cap and its bitcoin holdings, has dropped from 8X to only 2x in June, which has increased the risk of decreasing.
The company has suspended EVO warrant exercises from September 3 to 30, paving the way for priority stock issuing. Even though this shift can strengthen the meta -plant financing strategy.
Meanwhile, while joining the FTSE Japan Index, FTSE Russell’s semi -annual review of the FTSE Russell has been upgraded to a mid -cap stock from a small cap. The move has followed the company’s strong Q2 performance.
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