Metaplanet Battles Funding Strain as Stock Crashes Despite Bitcoin Bet

     

Tokyo firm’s share price collapse threatens its capital-raising model and future Bitcoin ambitions

Metaplanet, the Tokyo-listed company known for its aggressive Bitcoin accumulation, is facing fresh challenges as its stock price plummets, jeopardizing the funding mechanism that fueled its massive crypto purchases.

The company’s shares have fallen 54% since mid-June, even as Bitcoin has gained around 2% in the same period. The sharp decline has undermined its share-based “flywheel” strategy, which relies on rising stock prices to unlock capital through warrants issued to its main backer, Evo Fund.

With warrant exercises now unattractive for Evo, liquidity pressure is mounting, slowing Metaplanet’s pace of Bitcoin acquisitions. According to BitcoinTreasuries.NET, the firm currently holds 18,991 BTC, ranking seventh among public companies, but its ambitious goal of stacking 100,000 BTC by 2026 and 210,000 BTC by 2027 may be at risk.

Company Seeks Lifeline in Overseas Share Offering

In response, CEO Simon Gerovich announced plans to raise 130.3 billion yen ($880 million) through a public share sale in overseas markets. The company has also called a shareholder vote on the potential issuance of up to 555 million preferred shares – an unusual tool in Japan – which could bring in as much as 555 billion yen ($3.7 billion).

Gerovich described the preferred shares as a “defensive measure” that allows capital inflow without heavily diluting existing shareholders. Offering up to 6% annual dividends and initially backed by up to 25% of the firm’s Bitcoin holdings, the instruments are aimed at attracting yield-hungry Japanese investors.

Analysts Warn of Bitcoin Premium Decline

Still, experts remain cautious. Analysts note that the success of Metaplanet’s strategy hinges on the “Bitcoin premium” – the gap between its market cap and the actual value of its BTC holdings. That premium has collapsed from over 8x in June to just 2x, raising concerns over future dilution.

The company has temporarily suspended Evo’s warrant exercises for September to pave the way for preferred share issuance. Whether this pivot will stabilize Metaplanet’s fundraising remains uncertain.

Despite its financial struggles, Metaplanet received an upgrade in FTSE Russell’s September 2025 Semi-Annual Review, moving from small-cap to mid-cap status and joining the FTSE Japan Index following strong Q2 results.