Metaplanet, the Tokyo-listed company aggressively accumulating Bitcoin, is experiencing growing pressure as its share price declines, putting its fundraising model at risk, which has helped it build one of the largest corporate Bitcoin treasuries worldwide.
The firm’s stock has plummeted 54% since mid-June, even as Bitcoin (BTC) increased by about 2% during the same timeframe. This downturn has strained its capital-raising “flywheel,” a mechanism reliant on rising share prices to access funding via MS warrants issued to Evo Fund, its primary investor.
With shares significantly down, exercising these warrants is no longer appealing for Evo, constricting Metaplanet’s liquidity and hindering its Bitcoin acquisition strategy, according to a Sunday report by Bloomberg.
Led by former Goldman Sachs trader Simon Gerovich, Metaplanet now holds 18,991 BTC, making it the seventh-largest public holder, as per BitcoinTreasuries.NET. The firm aims to expand its holdings to 100,000 BTC by the end of 2026, and 210,000 BTC by 2027.
Related: Metaplanet, Smarter Web add almost $100M in Bitcoin to treasuries
Metaplanet looks to international markets
As its “flywheel” strategy falters, Gerovich is exploring alternative fundraising methods. On Wednesday, Metaplanet revealed plans to raise about 130.3 billion yen ($880 million) through a public share offering in international markets.
Moreover, shareholders will vote on Monday concerning the approval of up to 555 million preferred shares, a rare financial instrument in Japan, which could yield as much as 555 billion yen ($3.7 billion).
In a Bloomberg interview, Gerovich referred to preferred shares as a “defensive mechanism,” enabling capital infusion without diluting common shareholders should the stock continue to decline. These shares, which are anticipated to offer up to 6% annual dividends and initially limited to 25% of the firm’s Bitcoin holdings, may attract Japanese investors looking for yield.
Related: Metaplanet plans to raise additional $3.7B to buy Bitcoin
Declining Bitcoin premium jeopardizes Metaplanet’s strategy
However, analysts are wary. “The Bitcoin premium will dictate the success of the entire strategy,” stated Eric Benoit of Natixis. This premium, representing the difference between Metaplanet’s market cap and the value of its Bitcoin holdings, has dropped from over 8x in June to merely 2x, heightening the risk of dilution.
The company has halted Evo’s warrant exercises from September 3 to 30, setting the stage for the preferred stock issuance. Whether this shift will stabilize Metaplanet’s funding strategy remains uncertain.
In the meantime, Metaplanet has been upgraded from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review, gaining inclusion in the FTSE Japan Index. This comes after the company’s impressive Q2 performance.
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