Metaplanet announced on Monday that it has successfully completed a $255 million private funding round and launched a new warrant structure to support its additional Bitcoin purchase plans.
Additionally, Metaplanet unveiled an independent warrant issuance plan on the same day, which is expected to bring in an extra $234 million for its capital accumulation strategy, making it the fourth largest Bitcoin asset company globally.
Metaplanet Seeks $234 Million Through Innovative Warrant Program
Metaplanet issued $100 million in mobile warrants, which set a market net asset value (mNAV) clause described by Gerovich as innovative, allowing exercise only when the stock trading price exceeds 1.01 times the mNAV.
The mNAV ratio is used to compare the company's enterprise value with its cryptocurrency holdings. When mNAV is below 1, it becomes more challenging for the enterprise to raise funds through new stock issuance, potentially limiting its ability to purchase cryptocurrencies.
This new capital-raising mechanism is similar to the strategy employed by Michael Saylor, the largest corporate Bitcoin holder globally. The strategy's at-the-market (ATM) common stock issuance plan uses a similar mechanism, allowing the company to raise funds through gradual issuance of new common stock. This strategy issues these shares only when mNAV exceeds 1 to avoid diluting existing shares.