A Bold Bet: Metaplanet Dives Deeper into Bitcoin's Uncertain Depths

Metaplanet, the Japanese company transitioning from a hospitality and real estate operator to a Bitcoin treasury firm, has announced a new share offering to raise up to $1.44 billion for the expansion of its Bitcoin holdings and related operations. The offering includes 385 million new shares, priced at 553 yen ($3.75) each, representing a 9.9% discount to the company’s closing price of 614 yen on the day of the announcement. The proceeds will be used to purchase additional Bitcoin between September and October 2025, as a hedge against the depreciation of the Japanese yen and to support the company’s Bitcoin income-generating business.

This move aligns with Metaplanet’s ongoing strategy of converting its traditional business model into a digital asset-focused one. Over the past year, the company has repeatedly raised capital to acquire Bitcoin, now holding a total of 20,137 BTC on its balance sheet. This places Metaplanet among the top publicly traded Bitcoin treasury firms globally. According to data from industry analytics platforms, the firm has spent more than $2 billion on Bitcoin since the beginning of its treasury strategy. Recent purchases include 136 BTC acquired at an average price of just under $112,000.

The share offering represents an equity raise, not a bond issuance, and as such, introduces dilution risk for existing shareholders. This comes at a time when Metaplanet’s stock price has fallen nearly 39% in the past month, despite a modest rise in Japan’s broader Nikkei index. The decline in the company’s share price is attributed to a narrowing premium between its market cap and its Bitcoin net asset value (mNAV), as well as a recent dip in the price of Bitcoin.

Industry observers have noted the growing trend of public companies adopting Bitcoin treasury strategies. Public companies now collectively hold more than 1 million BTC, with some beginning to diversify into other cryptocurrencies like Ethereum (ETH) and Solana (SOL). Metaplanet’s approach is part of this broader movement, as it continues to expand its digital asset portfolio to hedge against inflation, negative interest rates, and Japan’s long-term debt challenges.

Analysts caution that the Bitcoin treasury model, while gaining traction, carries unique risks. One such risk is the volatility associated with the premium gap—the difference between a company’s share price and its net asset value. Greg Cipolaro, global head of research at NYDIG, noted that this spread has recently compressed, potentially increasing market volatility for such firms. Despite these risks, the strategy remains attractive for companies seeking to diversify their holdings and capitalize on the long-term potential of Bitcoin as a store of value.

Metaplanet’s stock has surged more than 150% over the past year, reflecting investor enthusiasm for its digital asset strategy. However, recent declines highlight the challenges of balancing capital-raising efforts with shareholder value and market sentiment. The company’s latest move into global markets underscores the increasing pressure on Bitcoin treasury firms to secure stable funding while maintaining growth and profitability.