Metaplanet, a Tokyo Stock Exchange-listed company, saw its stock price jump 17% on September 10 after securing a $30 million investment commitment from Nakamoto Holdings, a subsidiary of NASDAQ-listed KindlyMD (ticker: NAKA). This investment is part of Metaplanet's broader equity financing plan aimed at raising $1.4 billion to significantly expand its Bitcoin reserves.
The funding from Nakamoto Holdings, which marks its largest single investment to date and first in the Asian market, is scheduled to close by September 16, with share issuance set for September 17. Metaplanet currently holds 20,136 BTC, ranking it as the sixth-largest public company by Bitcoin reserves globally. The new capital will enable the acquisition of approximately 11,000 additional BTC, increasing its holdings by about 50%.
Metaplanet has also increased its Bitcoin reserve allocation from 5% to 10% of its capital reserves, emphasizing a long-term accumulation strategy. The company plans to use earnings from its Bitcoin holdings to support dividend payments. Technical models suggest Metaplanet's stock has a fair value of 1,332 JPY, with a bottom at 705 JPY, indicating potential undervaluation after a 54% decline from its June peak.
KindlyMD's stock (NAKA) surged 77.2% following the announcement, reflecting investor enthusiasm for its crypto-focused strategy post its August merger with Nakamoto Holdings. However, Metaplanet faces challenges with its "flywheel" financing model, as declining stock prices have reduced capital generation for Bitcoin purchases, compressing its Bitcoin premium from over 8x in June to roughly 2x.