Bitcoin News Today: Metaplanet’s Bitcoin Flywheel Stalls as Premium Shrinks

Metaplanet has reached a significant milestone in its Bitcoin accumulation strategy, acquiring 1,009 Bitcoin in a recent purchase that raised its total holdings to 20,000 BTC. The acquisition, which cost an average of $111,000 per coin for a total of $112 million, pushed the company’s Bitcoin stash to an aggregate value of $2.14 billion. The company has been aggressively purchasing Bitcoin since the beginning of 2025, increasing its holdings from 13,000 BTC at the end of June to 20,000 BTC by Sept. 1 [1].

The company’s financial strategy has relied heavily on a "flywheel" model, using share-based capital-raising to fund Bitcoin purchases. However, this model has come under strain as the company’s stock price has dropped by 54% since mid-June. This decline has impacted the attractiveness of share warrants and slowed the pace of Bitcoin acquisitions [1]. In response, Metaplanet has turned to international capital markets, announcing plans to raise $880 million through a public share offering. Additionally, the company is seeking shareholder approval for the issuance of up to 555 million preferred shares, a move that could raise as much as $3.7 billion [1].

The company’s aggressive Bitcoin strategy has earned it a place as the sixth-largest public holder of Bitcoin, surpassing Riot Platforms, according to recent data [2]. Metaplanet’s Bitcoin yield for the quarter ending Sept. 1 was reported at 30.7%, a measure used internally to assess the value of Bitcoin holdings relative to fully diluted shares. This figure, while lower than earlier quarters where the yield reached as high as 309.8%, still indicates a strong performance relative to the company’s capital structure [1].

The firm’s management has emphasized that metrics such as BTC Yield, BTC Gain, and BTC ¥ Gain are not traditional financial indicators but internal tools used to evaluate the accretiveness of Bitcoin purchases to shareholders. The company’s Bitcoin treasury operations, adopted as a core business in Dec. 2024, are modeled after similar strategies employed by U.S. firms such as MicroStrategy [1]. Both companies argue that holding Bitcoin provides a hedge against inflation and equity dilution, especially in environments of low interest rates and monetary expansion.

Metaplanet’s expansion into Bitcoin has also attracted international attention, including the involvement of Eric Trump, who was appointed as an advisor in March. Trump is scheduled to attend a shareholder meeting in Tokyo on Monday, further highlighting the company’s global aspirations and alignment with high-profile figures in the crypto space [1].

As the company continues to raise capital and expand its Bitcoin reserves, its ability to maintain and grow the Bitcoin premium—the difference between its market cap and the value of its holdings—will be crucial to the long-term success of its strategy. Analysts remain cautious, noting that the narrowing premium increases the risk of equity dilution and could challenge the sustainability of the current model [1].

Source:

[1] Metaplanet's Bitcoin strategy faces fundraising crunch as ... (https://cointelegraph.com/news/metaplanet-bitcoin-fundraising-flywheel-breaks)

[2] Metaplanet Surpasses 20000 BTC With $112M Bitcoin ... (https://bitbo.io/news/metaplanet-20000-btc-milestone/)