Key Points
- Metaplanet’s shares dropped by over 8% following the announcement of a 10-for-1 stock split.
- The stock split aims to improve liquidity, expand the investor base, and reduce the price per trading unit.
Japanese investment company Metaplanet experienced a significant drop in shares. The shares fell by 8.41% on over-the-counter markets. This drop followed the company’s announcement about a stock split.
The board approved a move to increase the number of shares and decrease the price per unit. This decision was made in an effort to improve the company’s liquidity.
Details on the Stock Split
In a notice released on February 18, Metaplanet revealed the purpose of the stock split. The company aims to lower the price per trading unit and in doing so, improve liquidity and expand their investor base.
This decision was made following a reverse stock split in August 2024. During this time, 10 shares were consolidated into one. After this consolidation, the share price increased significantly. This made it expensive for investors to purchase shares.
Metaplanet has become one of Japan’s most popular stocks. This is due to the company’s pivot to Bitcoin (BTC). The company now holds 1,762 Bitcoin (BTC) and has a bold target of 21,000 BTC.
The Impact of the Stock Split
To make it easier for investors to buy in, Metaplanet plans to split each share into 10. This will be effective from April 1. Shareholders recorded as of March 31 will receive additional shares. This will increase the total number of issued shares from approximately 39 million to nearly 392 million.
The exercise price for stock acquisition rights will also be adjusted. For instance, the price for the 13th to 17th series of stock acquisition rights will decrease from 5,555 yen to 556 yen. Despite these changes, Metaplanet emphasized that the stock split will not affect its stated capital.
