China Allows Crypto Ownership as Metaplanet Raised $517M For Bitcoin

Key Insights:

• China legally allows Bitcoin and crypto ownership, signaling a major national digital asset policy shift.
• Metaplanet raised 74.9 billion JPY by issuing 54 million shares via its 20th stock acquisition rights series.
• The share issuance increased Metaplanet’s total shares from 600.7 million to over 654.7 million in a single day.

China has officially recognized the legal ownership of Bitcoin and other cryptocurrencies, reshaping the global digital asset landscape.

Meanwhile, Japanese company Metaplanet has secured an additional $517 Million of funding as it builds its Bitcoin holdings. These developments mark an institutional turnaround in the changing Asian crypto landscape.

China Legalizes Bitcoin and Crypto Ownership

China has formally allowed legal ownership of Bitcoin and other cryptocurrencies. This marks a policy shift that departs from a long period of restrictive enforcement.

The change stems from continued regulatory talks and legal progress. These focus on how digital assets are classified and recognized as private property.

Consequently, the new legal environment allows Chinese citizens to possess cryptocurrencies as legally accepted personal property. The government still forbids crypto trading platforms and mining.

However, the ruling regarding ownership showcases a shift in regulatory policy. Legal experts noted that China’s Supreme People’s Court has recognized Bitcoin as property. It’s protected under civil law, according to prior official statements.

Nonetheless, with this new status, individual rights to hold and transfer digital currencies can be recognized with more clarity.

Metaplanet Raises 74.9 Billion JPY via Share Issuance

On June 25, Metaplanet Inc. announced a major fundraising move. It raised 74.9 billion Japanese Yen, or about $517 Million.

The capital came from exercising its 20th Series of Stock Acquisition Rights. These rights were issued on June 23 and allocated to EVO FUND.

According to the official filing, Metaplanet issued 54 million new shares at an exercise price of 1,388 JPY per share. This transaction was executed on June 24, marking the start of the company’s “555 Million Plan.”

The announcement confirms that 540,000 rights were exercised on the first day. It represents 29.19% of the total 1.85 million rights available under the series. This new funding will facilitate Metaplanet’s Bitcoin treasury accumulation plan.

The firm has declared it will accumulate its Bitcoin reserves and establish itself as the Asian version of MicroStrategy. The capital will be utilised in stages, concerning the long-term accumulation of digital assets.

Total Issued Shares Increase to Over 654 Million

Executing the stock acquisition rights has increased Metaplanet’s total issued shares from 600,714,340 to 654,714,340. This adjustment includes the 54 million newly issued shares from June 24, with no treasury shares transferred.

The company clarified that 1.31 million stock acquisition rights remain unexercised, equivalent to 131 million shares. Metaplanet’s June 25 announcement mentioned an earlier notice from June 6. That notice detailed the terms and pricing for the 20th to 22nd series of stock rights.

These are price adjustment and suspension rights, granted under a third-party allotment structure. The rights were created to offer Metaplanet flexibility in raising capital. This supports a broader financial strategy that involves investing in Bitcoin.

Recently, Metaplanet acquired 1,111 more Bitcoins for $118.2 million. This raised its total holdings to 11,111 BTC worth over $1.1 Billion. Despite geopolitical tensions and a 6% stock drop, the firm earned a 306.7% BTC yield year-to-date.

Metaplanet is currently in the top eight corporate Bitcoin holders category. It envisions increasing to 210K in its holdings by 2027.

Bitcoin Price Movement and Market Reaction

Following the news from China and Metaplanet’s capital raise, Bitcoin price climbed over 1% to $106.5K. It recovered from an intraday low near $105.4K. According to CoinMarketCap data, trading volume surged 5.58% to $67.31 Billion, supporting the upward move.

The price moved above the $105.4K support zone. It then encountered resistance at $106.8K. Bitcoin’s market cap currently stands at $2.11 Trillion. Short-term sentiment is cautiously bullish with a circulating supply of 19.88 million BTC.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.