Metaplanet Stock Shares Decline After Stock Split Announcement

Metaplanet shares dropped over 8% following the announcement of a 10-for-1 stock split aimed at improving liquidity.

Japanese investment firm Metaplanet experienced an 8.41% decline in its shares on over-the-counter markets after the firm revealed its decision to implement a stock split. This development came after the board’s approval to increase the share count and decrease the price per unit.

In a notice dated February 18, Metaplanet articulated that the objective of the stock split is to enhance liquidity and broaden the investor base.

> “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

Additionally, it is noteworthy that this decision follows a reverse stock split in August 2024, which merged 10 shares into one. Since this consolidation, share prices have surged, making it expensive for potential investors to buy in. As previously reported by crypto.news, Metaplanet has transformed into Japan’s hottest stock, soaring 3,600% after shifting focus to Bitcoin. As it currently stands, the firm holds 1,762 Bitcoin (BTC) and has set a bold target of 21,000 BTC, positioning itself as Asia’s leading BTC investment.

To lower the entry barrier, the company plans to execute the split effective April 1. Shareholders recorded as of March 31 will receive the additional shares, increasing the total number of issued shares from approximately 39 million to nearly 392 million.

Moreover, the exercise price for stock acquisition rights will also undergo adjustment as a result of the split. For instance, the price for the 13th to 17th series of stock acquisition rights will be reduced from 5,555 yen to 556 yen. Metaplanet reassured that this stock split would not affect its stated capital.

Read more: Bitcoin adoption pushed Metaplanet into Japan’s top 50, CEO says