Bitcoin News Today: Metaplanet’s Bitcoin Flywheel Stalls as Stock Plummets

Metaplanet has surpassed Trump Media & Technology Group and Riot Platforms to become the sixth-largest publicly traded company by Bitcoin holdings, with a current treasury of 18,991 BTC valued at approximately $2.1 billion. The Tokyo-listed firm, led by Simon Gerovich, has positioned itself as a major player in corporate Bitcoin accumulation, with ambitions to grow its holdings to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027. These figures place it just behind MicroStrategy, Marathon Digital, Core Scientific, ARK Invest, and Hut 8, as of the latest data from BitcoinTreasuries.NET [1].

However, the company’s aggressive Bitcoin acquisition strategy is under financial strain due to a significant decline in its stock price. Since mid-June, Metaplanet’s shares have dropped 54%, despite Bitcoin posting a 2% gain in the same period. This has disrupted its capital-raising “flywheel” mechanism, which relies on rising stock prices to allow Evo Fund, its major investor, to exercise warrants and generate liquidity for additional Bitcoin purchases. The weakened share performance has made warrant exercises unattractive, constraining Metaplanet’s ability to fund further purchases [1].

To address the liquidity crunch, the company announced plans to raise approximately $880 million through a public share offering in overseas markets. In addition, it is seeking shareholder approval for the issuance of up to 555 million preferred shares, which could raise up to $3.7 billion. These preferred shares, offering up to 6% annual dividends, are designed to provide capital without diluting common shareholders, and represent a novel funding approach in Japan’s market. Gerovich described the move as a “defensive mechanism” aimed at stabilizing the company’s funding amid ongoing stock volatility [1].

The company’s market valuation premium over its Bitcoin holdings has also contracted sharply, from over 8x in June to just 2x currently. Analysts like Eric Benoit of Natixis have highlighted the importance of maintaining this premium for the long-term success of Metaplanet’s strategy. A narrowing premium increases the risk of dilution and could make future fundraising more difficult. The company has suspended Evo’s warrant exercises from September 3 to 30, creating space for the preferred share offering [1].

Looking ahead, Metaplanet has been upgraded from a small-cap to a mid-cap stock in the FTSE Russell’s September 2025 Semi-Annual Review, a move attributed to its strong Q2 performance. This inclusion in the FTSE Japan Index could provide additional visibility and investor interest. Meanwhile, the effectiveness of its new fundraising mechanisms and ability to execute on its Bitcoin acquisition goals will remain key indicators of its financial resilience and long-term viability [1].

Source:

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

[2] Metaplanet Inc. Plans $884 Million Overseas Share Sale ... (https://scanx.trade/stock-market-news/global/metaplanet-inc-plans-884-million-overseas-share-sale-amid-bitcoin-acquisition-strategy-challenges/18156488)