Metaplanet, a Japanese investment firm known for its Bitcoin-focused strategy, saw its shares drop by 8.41% on over-the-counter markets after the company announced a 10-for-1 stock split. The decision, approved by the board, aims to increase the number of shares in circulation and lower the price per share, making the stock more accessible to a broader range of investors.
In a notice issued on February 18, Metaplanet explained that the stock split is designed to improve liquidity and attract more investors. The firm emphasized its goal to lower the price per unit of stock, thereby making it easier for smaller investors to buy shares while also strengthening its relationship with a wider pool of shareholders.
“we have decided to conduct a stock split to lower the price per trading unit, thereby improving liquidity, expanding our investor base, and strengthening our connection with a broader range of shareholders”, Metaplanet stated.
The announcement follows a reverse stock split in August 2024, when Metaplanet consolidated 10 shares into one, raising the share price significantly. While this move helped to boost the stock’s value, it also made the shares more expensive for potential investors. Since pivoting to a Bitcoin-focused strategy, the firm’s stock price has surged by an astonishing 3,600%, driven in part by Metaplanet’s growing Bitcoin holdings. The company now holds 1,762 Bitcoins, with plans to accumulate up to 21,000 BTC, positioning it as one of Asia’s leading cryptocurrency investments.
To lower the entry barrier for investors, the company has decided to split each share into 10, effective April 1. Shareholders recorded on March 31 will receive the additional shares. This will increase the total number of issued shares from approximately 39 million to nearly 392 million.
Along with the stock split, the exercise price for stock acquisition rights will be adjusted. For example, the price for the 13th to 17th series of stock acquisition rights will decrease from 5,555 yen to 556 yen.
Metaplanet clarified that the stock split will not impact the company’s stated capital, emphasizing that the move is purely designed to improve liquidity and broaden its investor base.