The stock fell as much as 8% in early trading after the firm priced the shares at ¥553, an almost 10% discount from Tuesday’s close. Metaplanet shares have fallen more than 30% since it announced the overseas share sale in August.
The hotelier-turned-Bitcoin-proxy firm will raise ¥204.1 billion ($1.4 billion) from the international offering, the majority of which will be spent on Bitcoin purchases, according to a filing on Tuesday.
Metaplanet’s foray into international equity markets comes as crypto stockpilers worldwide see their share prices sink, raising questions about the sustainability of the crypto proxy model pioneered by Michael Saylor’s Strategy Inc. Metaplanet’s stock has dropped more than 60% from a recent peak struck in June, after climbing over 400% since the start of this year.
US-based Bitcoin stockpiler Nakamoto Holdings Inc. has committed to buying up to $30 million of Metaplanet’s overseas offering, the company said on its website. Nakamoto’s founder, David Bailey, sits on Metaplanet’s advisory board.
Morgan Stanley & Co. International Plc and Cantor Fitzgerald & Co. are the bookrunners for Metaplanet’s international deal.
Japan’s largest crypto treasury has so far counted on stock acquisition rights as its main funding tool to buy Bitcoin, but that strategy has lost momentum as Metaplanet’s shares have slumped. The firm currently holds 20,136 Bitcoin, according to its website.
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