Metaplanet’s Stock Plunge Threatens Bitcoin Treasury Strategy
Metaplanet, the Tokyo-listed firm making headlines for its aggressive Bitcoin accumulation, is suddenly facing a harsh reality: its fundraising efforts are deteriorating.
Among the crypto assets under coverage by the analysts, the price of Bitcoin increased by 2% since the issuance of a previous note on Metaplanet. Meanwhile, Metaplanet’s shares fell 54% to 26c, hampering the company from establishing a capital-raising “flywheel.”
The flywheel depends upon higher share price unlocking liquidity through the sale of MS warrants to Evo Fund which is the company’s main backer. However, as the shares have decreased significantly, it is no longer profitable to exercise these warrants — this would drain Metaplanet of the cash it requires to keep accumulating Bitcoin.
Inside Metaplanet’s Ambitions and the Liquidity Crunch
Simon Gerovich, a former trader at Goldman Sachs, heads Metaplanet, which holds 18,991 BTC, the world’s 7th largest public Bitcoin holder according to BitcoinTreasuries.net. The company’s target is nothing short of staggering:
- 100,000 BTC by 2026
- 210,000 BTC by 2027
However, the liquidity crunch posed a question on whether there can be a possibility.
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Turning to Overseas Investors and Preferred Shares
Gerovich is trying new ways to raise money as its flywheel slows down. The firm is planning to raise 130.3 billion yen ($880 million) through a public share offer to overseas markets.
Shareholders will also vote on whether to allow up to 555 million preferred shares, which are uncommon in Japan. Upon approval, this could bring in 555 billion yen ($3.7 billion).
According to Gerovich, the preferred shares are a “defensive mechanism” that facilitates capital injections with minimal dilution to current shareholders.
These instruments, offering up to 6% annual dividends, and backed by up to 25% of the Metaplanet Bitcoin reserves, may appeal to Japanese investors hungry for yield.
Analysts Warn of Bitcoin Premium Collapse
However, experts remain skeptical. Eric Benoit of Natixis stated that Metaplanet’s entire strategy depends on the “Bitcoin premium,” the difference between its market capitalization and the value of its Bitcoin holdings.
The premium has plummeted from 8x in June to only 2x, creating challenges for Metaplanet to generate funds without heavy dilution.
The firm had stopped any Evo warrant exercises in September, to provide for the preferred stock issuance. It is uncertain if this change will stabilize its finances or just postpone pain.
Despite Challenges, Signs of Progress
In spite of upheavals, there is a positive development: amid the turbulence, Metaplanet was upgraded from small-cap to mid-cap status in FTSE Russell’s September 2025 review, and included in the FTSE Japan Index.
The positive results in Q2 may attract institutional investors, which can be a source of funding for the firm’s efforts to accumulate Bitcoin.
