"MetaPlanet Considers Issuing Preferred Shares Amid Funding Pressure"

Son Min

Summary

MetaPlanet is said to be facing difficulties in funding, showing a sharp decline in its stock price and a slowdown in Bitcoin purchasing pace.
Accordingly, MetaPlanet is pursuing alternative funding measures such as issuing new shares to overseas investors and considering issuing up to $3.7 billion in preferred shares.
CEO Simon Gerovich emphasized that preferred shares offering a 6%% annual dividend could increase their attractiveness to investors.

MetaPlanet, regarded as a strategy in Japan, is said to be experiencing difficulties in raising funds.

On the 31st (local time), Bloomberg reported, "Since mid-June, MetaPlanet's stock price has plunged 54%," adding, "the funding mechanism that relied on a rising stock price has reached its limits." It also noted, "The recent pace of Bitcoin (BTC) purchases has also slowed significantly."

Accordingly, MetaPlanet is putting all efforts into alternative financing. On the 27th, MetaPlanet announced, "We will issue 555,000,000 new shares to investors outside Japan." This amounts to about $880 million. At the shareholders' meeting to be held on September 1, a decision will be made on whether to issue up to $3.7 billion in preferred shares. The outlet added, "Issuing preferred shares is a very rare case in Japan."

Simon Gerovich, MetaPlanet's chief executive officer (CEO), told Bloomberg, "Preferred shares are a defensive device that can attract capital even amid a stock price decline," and emphasized, "These preferred shares will provide a 6% annual dividend, making them an attractive option for investors."

Meanwhile, MetaPlanet currently holds 18,991 BTC, ranking 7th among publicly listed companies globally.

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