Metaplanet Faces Challenges Amid Falling Share Price
Metaplanet, a Tokyo-listed company that is actively accumulating Bitcoin, is experiencing increased pressure as its stock price declines, putting at risk the fundraising model it has relied on to establish one of the largest corporate Bitcoin treasuries in the world.
Since mid-June, the firm’s stock has fallen by 54%, whereas Bitcoin (BTC) has seen a modest gain of about 2% during the same timeframe. This drop has stressed its capital-raising “flywheel,” which is a mechanism that relies on increasing share prices to facilitate funding via MS warrants issued to Evo Fund, its principal investor.
With the significant decline in share prices, exercising these warrants has become less appealing for Evo, which in turn is tightening Metaplanet’s liquidity and hindering its Bitcoin acquisition efforts, as stated in a report by Bloomberg on Sunday.
Metaplanet, led by former Goldman Sachs trader Simon Gerovich, currently possesses 18,991 BTC, making it the seventh-largest public holder according to BitcoinTreasuries.NET. The organization aims to increase its holdings to 100,000 BTC by the end of 2026 and to 210,000 BTC by 2027.
As the momentum of its “flywheel” strategy diminishes, Gerovich is exploring alternative fundraising avenues. On Wednesday, Metaplanet revealed its intention to raise around 130.3 billion yen ($880 million) through a public share offering in international markets.
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Moreover, shareholders are set to vote on Monday regarding the approval of up to 555 million preferred shares, a somewhat uncommon financial instrument in Japan, which could generate as much as 555 billion yen ($3.7 billion).
In an interview with Bloomberg, Gerovich referred to the preferred shares as a “defensive mechanism” that would allow for capital infusion without diluting common shareholders if the stock were to fall further. These shares are anticipated to yield up to 6% annual dividends and are initially limited to 25% of the company’s Bitcoin assets, potentially attracting Japanese investors looking for yield.
However, analysts express caution. “The Bitcoin premium is what will determine the success of the entire strategy,” remarked Eric Benoit from Natixis. This premium, which reflects the difference between Metaplanet’s market capitalization and the value of its Bitcoin assets, has decreased from over 8x in June to just 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. It remains to be seen whether this transition can stabilize Metaplanet’s funding strategy.
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 a spot in the FTSE Japan Index. This upgrade is a result of the company’s strong performance in Q2.
