Metaplanet (MTPLF) has announced that it will suspend the exercise of its series 20 to 22 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 allocation to the Evo Fund, will halt the exercise of all remaining rights for a 20-day trading period.
what it means
Metaplanet is essentially pausing, for now, the sale of common stock to fund additional bitcoin purchases. The company is doing this after a months-long collapse in its stock left the stock’s valuation just above the value of bitcoin on its balance sheet. Therefore, additional sales of shares could have dilutive effects for shareholders.
Metaplanet is not alone. Even though bitcoin has risen throughout the year and is trading at record levels, shares of bitcoin treasury companies, most of which were quickly formed in an attempt to imitate the success of the Michael Saylor Strategy (MSTR), have plummeted.
Among them are KindlyMD (NAKA) and Strive (ASST), which recently closed SPAC merger deals only to see their stock prices quickly lose 80% or more as investors questioned whether they should pay any premium over the value of bitcoin on their balance sheet.
Metaplanet, which holds 30,823 BTC and ranks as the fourth-largest corporate bitcoin holder globally, said the suspension is a strategic measure to manage capital formation amid changing market conditions.
The company said it will continue to maximize flexibility, strengthen its financial foundation and support shareholder value. It also plans to continue developing new financial instruments and improving its capital policy.
