Metaplanet (MTPLF) announced that it will suspend the exercise of its 20th to 22nd series of stock acquisition rights, also known as Moving Strike Warrants, from October 20 to November 17. The suspension, which applies to warrants issued through a third-party allotment to Evo Fund, will pause the exercise of all remaining rights for a 20-day trading period.
What it means
Metaplanet is essentially stopping, for now, the sale of common stock to fund additional bitcoin purchases. The company is doing this after a months-long slump in its shares left the stock’s valuation barely above the value of bitcoin on its balance sheet. Additional share sales could therefore have a dilutive effect for shareholders.
The metaplanet is not alone. Even as Bitcoin has risen throughout the year and traded toward record highs, shares of Bitcoin cash companies — most of which were quickly created in an attempt to emulate the success of Michael Saylor’s (MSTR) strategy — have plunged.
Among them are KindlyMD (NAKA) and Strive (ASST), both of which recently entered into SPAC merger deals only to see their stock prices quickly lose 80% or more as investors questioned whether they should pay a premium over the value of bitcoin on their balance sheet.
Metaplanet, which holds 30,823 BTC and ranks as the world’s fourth largest corporate bitcoin holder, said the suspension is a strategic move to manage capital formation amid changing market conditions.
The company said it will continue to maximize its flexibility, strengthen its financial foundation and support shareholder value. It also plans to continue developing new financial instruments and strengthening its capital policy.
