Bitcoin Japan Shares Fall 26.7% After EVO Fund Financing Deal Worth $59.5M

Bitcoin Japan's shares fell 26.7% to 99 yen on Friday following disclosure of a convertible bond and warrant financing package with Cayman Islands-based EVO Fund that could raise approximately 9.66 billion yen ($59.5 million) in net proceeds over roughly 12 months, according to Tokyo Stock Exchange filings.

The financing carries significant dilution risk for existing shareholders. If the bond converts at its floor price and all warrants are exercised, the deal could create new shares equal to as much as 110.08% of the company's existing share count. The Tokyo-listed company, formerly known as apparel wholesaler Marusho Hotta, confirmed that an independent committee determined the financing necessary and appropriate under exchange listing rules.