Metaplanet stock fell 25% this week, dropping to 1,256 JPY, even as the Bitcoin firm raises $517M on Day 1 of its “555 Million Plan.”
On Wednesday, Metaplanet stock price plummeted by an additional 12%, reaching a low of 1,256 JPY.
This occurred as the Bitcoin holding company initiated its “555 Million Plan” with an initial fundraising of $517 million.
The stock has experienced a nearly 26% decline from its 12-year high of 1,900 JPY, which was achieved last week, over the past week.
Conversely, the Japanese organization persists in acquiring 1% of the BTC supply by 2027.
Metaplanet Stock Goes Down Even Though “555 Million Plan” Starts
The selling pressure on Metaplanet stock has recently increased following a significant rally throughout May and the first half of June.
It is trading at 1,390 JPY, representing a 9.27% decline as of press time.
However, some market analysts consider this a typical occurrence following significant rallies.
The stock is trading at 288% gains year-to-date despite the correction that occurred last week.
Metaplanet has initiated its ambitious “555 Million Plan” with a robust start, securing approximately $517 million in equity capital on the first day of the initiative.
The company generated this substantial sum by issuing 54 million shares through the 20th series of its stock acquisition rights.
The company’s financial position is considerably enhanced due to the dissolution of its $281 million in 0% ordinary bonds.
Metaplanet’s Bitcoin strategist, Dylan LeClair, has observed that this strategic move has significantly re-rated the company’s BTC Rating (Bitcoin Net Asset Value/Debt), which has increased from 4.0x to a remarkable 97.8x.
Currently, Metaplanet maintains a minimal debt of approximately $12 million in bonds and roughly $1.18 billion in Bitcoin.
Consequently, institutions such as Citigroup have expressed interest in purchasing Metaplanet stock.
Focusing On Bitcoin Treasury, US Expansion
Metaplanet disclosed on June 6 that its 555 Million Plan aims to increase the company’s Bitcoin treasury by acquiring BTC through a series of acquisitions using equity and debt, with the ultimate objective of accumulating 210,000 BTC by 2027.
A company also disclosed a $5 billion raise for its US subsidiary, MTPLF, the day before to enhance its Bitcoin holdings.
Simon Gerovich, CEO of the organization, addressed the development:
“We’re increasing our commitment to Florida by 20x. Thanks again Francis Suarez, Miami was the right choice. Metaplanet has approved up to $5B for our US subsidiary as we accelerate toward 210,000 BTC with Florida at the center of our US expansion”.