Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Metaplanet, a Tokyo-listed firm that has adopted a Bitcoin acquisition strategy, is confronting a significant fundraising challenge as its stock price has plummeted 54% since mid-June, according to a recent Bloomberg report. This sharp decline has severely impacted its share-based funding mechanism, forcing the company to seek alternative capital-raising methods to sustain its ambitious goal of accumulating a substantial Bitcoin treasury.
Funding Mechanism Under Stress
The company’s stock drop, occurring even as Bitcoin gained approximately 2% in the same period, has put its capital-raising “flywheel” under considerable stress. This mechanism relies on rising share prices to unlock funding through MS warrants issued to Evo Fund, its primary investor.
With shares down sharply, exercising these warrants is no longer attractive for Evo Fund, which has squeezed Metaplanet’s liquidity and slowed its Bitcoin acquisition strategy. Led by former Goldman Sachs trader Simon Gerovich, Metaplanet currently holds 18,991 BTC and aims to increase its holdings to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027, according to BitcoinTreasuries.NET.
Seeking Alternative Capital
To counteract the faltering “flywheel” strategy, Metaplanet is actively pursuing alternative fundraising avenues. The company announced plans on Wednesday to raise approximately 130.3 billion yen ($880 million) through a public share offering in overseas markets.
Additionally, shareholders are scheduled to vote on Monday to approve the issuance of up to 555 million preferred shares, a rare instrument in Japan, which could potentially raise as much as 555 billion yen ($3.7 billion). In an interview with Bloomberg, Gerovich described the preferred shares as a “defensive mechanism” designed to allow capital infusion without diluting common shareholders if the stock experiences further declines.
These preferred shares are expected to offer up to 6% annual dividends and will initially be capped at 25% of the firm’s Bitcoin holdings, potentially appealing to Japanese investors seeking higher yields.
Analyst Concerns and Market Perception
Despite these efforts, analysts remain cautious about the company’s strategy. Eric Benoit of Natixis noted that “The Bitcoin premium is what will determine the success of the entire strategy.” This premium, which represents the difference between Metaplanet’s market capitalization and the value of its Bitcoin holdings, has fallen significantly from over 8x in June to just 2x, increasing the risk of dilution for existing shareholders.
Metaplanet has temporarily suspended Evo Fund’s warrant exercises from September 3 to 30, a move that precedes the proposed preferred stock issuance. The effectiveness of this strategic shift in stabilizing Metaplanet’s funding remains uncertain.
Recent Positive Development
Amidst these financial adjustments, Metaplanet has received an upgrade from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review. This upgrade will lead to its inclusion in the FTSE Japan Index, a move that follows the company’s strong Q2 performance.
As Metaplanet navigates these fundraising challenges and pivots its capital strategy, the long-term success of its Bitcoin acquisition goals will depend heavily on market confidence and the stability of its new funding mechanisms. The recent positive reclassification by FTSE Russell offers a notable development amidst its strategic adjustments.
