Bitcoin Japan, the Tokyo-listed firm formerly known as apparel wholesaler Marusho Hotta, said its board approved a financing package with Cayman Islands-based EVO Fund that could raise an estimated 9.66 billion yen ($59.5 million) in net proceeds, including 662 million yen ($4.1 million) for its first bitcoin (BTC) purchase, according to a shareholder Q&A published on the company's website.
Both instruments carry moving-strike pricing, with an initial conversion and exercise price of 138 yen and a floor of 69 yen. EVO Fund has used the structure, sometimes described as Japan's version of an at-the-market equity facility, to finance Metaplanet's bitcoin accumulation.
Full conversion and exercise at the initial price would create about 70.3 million new shares, equal to 95.33% of the company’s existing share count. If the bond converts at its floor price and all warrants are exercised, the potential new shares would equal 110.08% of the existing share count, according to Bitcoin Japan's financing filing. The company said exercises are generally capped at 10% of outstanding shares per month and that its board can buy back the securities at their issue price.
Bitcoin Japan shares traded as low as 87 yen on Friday, a year-to-date low, before closing at 99 yen, down 26.7% from Thursday’s close, per Nikkei data.
