Metaplanet's President Outlines Ambitious Bitcoin Purchase Plan, Suggests Potential Stock Repurchases
In a strategic move aimed at bolstering its long-term crypto plans, Metaplanet, the innovative company, has announced its focus on Bitcoin as a key revenue generator. The company's president, Simon Gerovich, has outlined a careful and calculated approach to Bitcoin acquisitions, with a priority on getting the best yield while minimising price pressure.
Gerovich has set investor expectations for the Bitcoin buys, framing the strategy as fast but careful. He emphasises the importance of quick execution without flooding the market, a balance that he believes will ensure the best possible yield while maintaining shareholder value.
The company's Bitcoin buy window is centred on speed and low market impact. Brokers have been warned that short selling ahead of the offering is illegal, and the September-October timeline for Bitcoin buys is a regulatory disclosure, not a hard cap.
However, Gerovich is cautious about the pace of acquisitions, stating that dropping all funds into Bitcoin in one day would be irresponsible. Instead, he plans decisive, but not rushed, Bitcoin buys. If Metaplanet's shares trade below 1x mNAV, issuing equity could potentially harm the Bitcoin yield, leading the company to consider preferred shares and stock buybacks to keep value creation intact.
Metaplanet has met with approximately 100 institutional investors during the offering process, many of whom are long-term allocators who will continue to watch the company closely. The company aims to bring in more long-term capital by meeting with these investors, a move that Gerovich believes will strengthen Metaplanet's position in the stock market.
Management is aware of how the offering window played out, but did not name specific actors. The approximately 100 institutions connected with Metaplanet during the implementation of the offer scheme are not publicly disclosed in detail.
The price move during the announcement window saw a nearly 30% decline in Metaplanet's share price, which Gerovich attributes to confusion over deal size, share count, and general market sentiment. Despite this, he remains optimistic about the company's future, with a focus on maintaining both Bitcoin yield and shareholder value in the stock market.
In conclusion, Metaplanet's strategic approach to Bitcoin acquisitions underscores its commitment to balancing yield, shareholder value, and market impact in the stock market. As the company moves forward, it will continue to engage with institutional investors and navigate the complexities of the Bitcoin market with caution and decisiveness.
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