US Game Advertising Company Super League to Join MetaPlanet, Aiming to Penetrate Bitcoin Among Gamers with 2100 BTC Contribution Proposal to be Voted on at Shareholders Meeting on 16th

Key Points of This Article

• The valuation of contributed BTC has increased by approximately $47 million since August.
• The game advertising business will continue, operating alongside BTC.

Vote on BTC Investment at Shareholders Meeting on 16th

Super League Entertainment, listed on the NASDAQ, published a letter on the 6th asking shareholders to support the transaction with MetaPlanet. The letter, signed by Chairman and CEO Matt Edelman, described this transaction as "the most significant transaction in the company's history." The approval will be put to a vote at the annual shareholders meeting on the 16th.

The transaction was announced on August 18. MetaPlanet will contribute 2,100 Bitcoin (BTC) in cash and an additional $2.5 million through a wholly-owned subsidiary in the United States. After the transaction is completed, it will hold approximately 95.7% of Super League's outstanding common stock, making it a consolidated subsidiary. The letter introduced MetaPlanet as the world's third-largest corporate holder of BTC (as of August 18). The company name will be changed to Superplanet and will continue to be listed on NASDAQ pending approval.

The valuation of the contributed BTC is approximately $132 million based on the closing price on Coinbase on August 14. This represents the largest single investment in Super League's history. Based on the closing price on October 2, it has ballooned to approximately $179 million.

Continuing Game Business, Aiming to Penetrate BTC Among Gamers

Edelman emphasized that this transaction does not represent a "shift in direction" from the core business. While positioning the BTC treasury as the main driver of corporate growth, the media and advertising business related to gaming is expected to continue, involving management, employees, and partner brands. The company connects the global gamer population, estimated at 3.3 billion, with advertisers.

The letter pointed out that gamers are accustomed to owning and trading in-game assets as a point of intersection between the two businesses. It aims to create opportunities for brands and users to engage with BTC, seeking to lead in areas where both businesses naturally intersect ahead of competitors.

5-Year Lock-Up, Acknowledging Market Valuation Stagnation

MetaPlanet agreed to a 5-year lock-up for the common stock it will receive upon completion of the transaction, as well as for common stock that may be acquired through the exercise of warrants or conversion of preferred stock. Edelman positioned the company as a long-term partner rather than a short-term investor, explaining that it will build the business on top of existing assets rather than divesting them.

The letter acknowledged that although it has eliminated debt and reduced costs over the past 18 months, these achievements had not translated into market valuation until the announcement of the transaction. If warrants are exercised, additional funds will come in, prioritizing a structure that increases the amount of BTC held per share in fundraising. Completion of the transaction requires shareholder approval, as well as filings with NASDAQ and regulatory procedures in both Japan and the United States.

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