Japanese investment firm Metaplanet announced today that it will temporarily suspend rights to acquire shares. According to data from Coingecko, the company currently has 30,823 BTC on its balance sheet.
Metaplanet pauses stock selling, commits to buying Bitcoin
According to advertisement Earlier today, one of the major Bitcoin treasuries, Metaplanet, was preparing to suspend the exercise of Series 20 to 22 share acquisition rights. These rights, also known as animated strike orders, will be suspended from October 20 to November 17.
For the uninitiated, trailing strike orders are financial instruments that give investors the right, but not the obligation, to buy or sell a company’s shares at a strike price that adjusts over time, usually based on the stock’s market price or other metrics.
Today’s announcement means Metaplanet is temporarily pausing the sale of common shares to fund additional BTC purchases. Given the company’s stock performance recently, this should come as no surprise.
Metaplanet shares have collapsed a whopping 70% from their June highs. The following chart shows how Metaplanet stock has fallen more than 22% over the past month, trading at $550 at the time of writing.
Combined with the lower price action, Metaplanet’s valuation now stands at 1.05x net asset value (NAV), the lowest reading since the company launched its Bitcoin treasury strategy. The total value of Metaplanet stock is now slightly higher than the total value of the BTC you hold.
The decision to temporarily halt the sale of additional shares will likely be made to avoid further dilution of shareholder value. The seemingly incompatible behavior between the rising price of BTC and the falling shares of Metaplanet is not out of the ordinary.
For example, Michael Saylor-led Strategy – despite being the largest public company in terms of BTC held on its balance sheet – has had to struggle over the past few months. MSTR shares have fallen more than 4.5% over the past month.
However, Metaplanet reiterated that it remains committed to purchasing more Bitcoin in the future. The company said in its official announcement:
We remain committed to our mission of expanding Bitcoin holdings and maximizing BTC returns for the benefit of our shareholders. In support of this mission, we are also developing new financial instruments and enhancing the sophistication of our capital policy.
Cryptocurrency adoption continues to grow
While Metaplanet’s pause on stock sales may spook some Bitcoin bulls, the overall trend of corporate adoption of cryptocurrencies continues to grow. For example, CleanCore recently listed on the New York Stock Exchange open Its treasury now contains 710 million doges.
Likewise, Mara Holdings recently more The company’s treasury increased by 373 bitcoins, exceeding $6 billion in holdings. Nation-states appear to be jumping on the bandwagon as well, such as Luxembourg male Its sovereign wealth fund is set to invest in Bitcoin exchange-traded funds (ETFs).
However, some industry experts see the recent rise in corporate adoption of digital assets as a good thing no Completely organic. At press time, Bitcoin is trading at $117,672, down 2.7% over the past 24 hours.
Featured image from Unsplash.com, charts from Yahoo! Finance and TradingView.com
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