Metaplanet (MTPLF) has announced that it will suspend the exercise of its 20th to 22nd row of share purchase rights, also known as the relocation of strike options, from October 20 to November 17. The suspension, which applies to Warrants, which was issued through a third party’s allocation of Evo Fund, will set the exercise of all the remaining rights for a 20-day trade period.
What that means
Metaplanet essentially stops for now the sale of common shares to finance additional Bitcoin purchases. The company does this after a month long collapse in its stock has left the stock value of just over the value of Bitcoin on its balance. Thus, further sales of shares would potentially be dilution to shareholders.
The metaplan is not alone. Even when Bitcoin has risen throughout the year and acts within the sight of record highs, shares in Bitcoin Treasury companies – most of which were quickly formed in attempts to emulate success with Michael Say’s strategy (MSTR) – are thrown.
Among them are friendly (Naka) and Strive (ASST), both of which recently closed SPAC merger agreements only to see their stock prices quickly lose 80% or more, as investors ask for having to pay any premium to the value of Bitcoin on their balance.
Metaplanet, which contains 30,823 BTC and ranks as the fourth largest company’s Bitcoin owner globally, said the suspension is a strategic step to controlling capital formation in the midst of developing market conditions.
The company said will continue to maximize flexibility, strengthen its financial foundation and support the shareholder value. It also plans to continue to develop new financial instruments and improve its capital policy.
