Japanese digital asset reserve company Metaplanet is set to invest 2,100 bitcoins in Nasdaq-listed Super League Entertainment (SLE). This substantial investment will secure approximately 95.7% ownership, with the aim of transforming Super League, a gaming and media company, into a bitcoin reserve platform.
CoinDesk reported on Tuesday that Metaplanet will invest 2,100 bitcoins, valued at roughly 132.1 million USD, along with 2.5 million USD in cash into Super League.
In exchange, Metaplanet will receive 44.9 million common shares, preferred shares, and warrants from Super League. Upon completion of the deal, Super League will rebrand as SuperPlanet.
Metaplanet’s Chief Executive Officer (CEO), Simon Gerovich, announced on X (formerly Twitter) that this investment represents less than 5% of their total bitcoin holdings. He added that the company could potentially contribute more bitcoins as the platform expands.
SuperPlanet intends to leverage bitcoin as collateral for issuing preferred shares and plans to distribute dividends from operating profits and other cash flows.
While the exact launch date for SuperPlanet remains undisclosed, the business transition is expected to conclude in the fourth quarter of this year.
This strategic move comes in the wake of a downturn in the digital asset reserve sector that began last year. During that period, stock prices of major bitcoin-holding companies plummeted below the value of their digital asset holdings.
In response to declining stock prices and mounting debt pressures, some companies opted to liquidate their bitcoin reserves or pivot towards other ventures, including artificial intelligence (AI) initiatives.