Metaplanet to Raise $135 Million for Bitcoin Accumulation
Japan's largest corporate Bitcoin holder, Metaplanet, plans to raise approximately $135 million to further accumulate Bitcoin, even as the asset's price trades below $90,000.
The company is opting to raise capital by issuing preferred shares instead of common stock, a strategy seemingly designed to protect its stock price from further decline. Metaplanet's share price has already plummeted nearly 60% in the past six months, currently standing at 387 JPY (approximately $2.46 USD), according to Google Finance.
To mitigate further volatility, Metaplanet will issue preferred shares with a 4.9% dividend, as stated in a document published on Thursday. Issuing common stock at the current valuation could have potentially led to a further slide in the stock price. This decision comes as the company's share price has recently fallen below its multiple Net Asset Value (mNAV), a development that has not deterred the company.
"Bitcoin is rapidly gaining strategic significance as a new store of value asset," Metaplanet stated. The mNAV was reported as 1.01 at the time of publication.
Metaplanet holds the position of the fourth-largest Bitcoin treasury globally, with approximately 30,823 Bitcoin, according to data from BitcoinTreasuries.NET.
This fundraising plan emerges as Bitcoin has entered a significant correction phase, trading around $87,000, a considerable drop from its all-time high of $125,100 reached just six weeks prior, according to CoinMarketCap.
Metaplanet's aggressive Bitcoin acquisition strategy has drawn criticism. Crypto analyst Ted noted in a recent X post that securing Bitcoin-backed loans to purchase more Bitcoin, especially when the company is already "underwater," is a "bad idea."
Meanwhile, Strategy, the largest public Bitcoin holder, has also seen its mNAV fall below 1, according to SaylorTracker.
Singaporean Retail Investors Show Strong Crypto Adoption
Cryptocurrency is gaining significant traction among Singaporean retail investors, according to a recent survey conducted by Coinbase and MoneyHero.
The survey results indicate that nearly two-thirds of active retail investors in Singapore now hold some form of cryptocurrency. Specifically, 61% of respondents reported holding crypto during the survey period, suggesting that cryptocurrency participation is evolving from a niche interest to a more integrated part of retail finance in Singapore.
However, a significant portion of investors are maintaining modest allocations, with the average self-reported portfolio allocation in cryptocurrency falling between 6% and 12%.
Confidence in the long-term viability of the asset class remains strong, as 58% of respondents identified themselves as long-term holders.
When it comes to learning about cryptocurrency, social media platforms have emerged as the primary source of information for Singaporeans, with 62% of respondents indicating they learn about digital assets through these channels.
Singapore has long been recognized as a crypto-friendly hub. A survey conducted in May by crypto exchange Independent Reserve found that 94% of Singaporeans were aware of at least one type of cryptocurrency, and 29% currently own or have previously owned crypto.
South Korea Debates Stablecoin Issuance by Non-Bank Entities
South Korea's top financial regulator is reportedly considering whether technology giants should be permitted to issue won-denominated stablecoins.
While the Financial Services Commission's (FSC) consideration of this concept is in its preliminary stages, it has already generated tension within the nation's financial sector, according to a local media report.
Concerns have been raised that the entry of highly technologically advanced big tech and fintech companies into the stablecoin market could diminish the competitiveness of traditional banks, the report stated.
Conversely, some in the banking industry believe it is premature to express alarm. An unnamed commercial bank official commented that non-bank participation is still in the discussion phase, making it difficult to assess its potential impact on market competition. The official added that technical and regulatory responses would be prepared once the framework becomes more concrete.
South Korea's five major banks—KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank—are all actively exploring and experimenting with stablecoins.
This development follows the recent announcement that KRWQ, the first fiat-backed multichain stablecoin pegged to the South Korean won (KRW), surpassed 1 billion won in trading volume (approximately $678,090 USD) in less than two weeks after its launch.
On a broader level, cryptocurrency adoption in South Korea continues to grow. The country recorded the third-highest growth rate in the APAC region, with adoption doubling over the past 12 months, according to a September report from Chainalysis.
Naver Poised to Acquire South Korea's Leading Crypto Exchange, Upbit
South Korean internet giant Naver is reportedly nearing an acquisition of Dunamu, the company behind the country's largest cryptocurrency exchange, Upbit.
Naver is said to be pursuing a comprehensive stock swap through its fintech subsidiary, Naver Financial, with the aim of making Dunamu a wholly owned subsidiary and expanding its presence in the digital finance sector, according to a local report.
The report indicated that once both companies approve the proposal at their respective board meetings next week, the plan will proceed to shareholders for approval before the deal can be finalized.
Upbit currently holds the distinction of being the largest cryptocurrency exchange in South Korea and ranks as the fourth-largest globally in terms of trading volume.