Bitcoin News Today: "Metaplanet Gambles 6% Dividend Preferred Shares to Save Its Bitcoin Flywheel"

Metaplanet, a Tokyo-listed company that transitioned from a hotel operator to a Bitcoin proxy, has secured shareholder approval to issue preferred shares that could raise up to ¥555 billion ($3.8 billion) to fund its ambitious Bitcoin accumulation strategy. This decision follows a broader capital-raising initiative that includes a recent overseas share offering expected to raise approximately ¥130.3 billion ($880 million) [1]. The company's stock has fallen 54% since mid-June, disrupting its “flywheel” strategy, a self-sustaining mechanism in which rising share prices incentivize its key investor, Evo Fund, to convert warrants into shares, generating capital for Bitcoin purchases [2].

The shareholder meeting, held in central Tokyo, included the approval of a proposal to issue up to 555 million preferred shares. These shares offer a defensive mechanism, enabling capital infusion without further diluting common shareholders should the stock continue to decline [4]. The preferred shares are expected to offer up to 6% annual dividends and are initially capped at 25% of the firm’s Bitcoin holdings [2]. This approach is designed to attract Japanese investors seeking yield in a low-interest environment.

Metaplanet's Bitcoin acquisition has continued despite the stock decline. The company recently acquired an additional 1,009 BTC for approximately $112.2 million, bringing its total holdings to 20,000 BTC. It now ranks as the sixth-largest public Bitcoin treasury company globally, surpassing Riot Platforms [1]. The company has set a target to increase its holdings to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027 [3].

The stock's performance has put pressure on the company’s capital-raising model. With its market value now roughly double the value of its Bitcoin holdings—down from an eight times premium in June—analysts have raised concerns. According to Natixis analyst Eric Benoist, the Bitcoin premium is a critical driver of the strategy’s success. If this premium compresses, the ability to accumulate Bitcoin on favorable terms diminishes, leading to reduced investor interest and a further decline in the stock price [2]. Meanwhile, the company's inclusion in the FTSE Japan Index is viewed as a key milestone in its mission to strengthen its position in the Bitcoin treasury space [2].

Eric Trump, appointed as a strategic advisor in March 2025, attended the shareholder meeting and publicly supported Metaplanet’s CEO, Simon Gerovich. Trump compared him to Strategy’s Michael Saylor and affirmed the company's mission to pioneer a new theory of credit in Japan based on digital assets [1]. His involvement highlights the growing international and high-profile interest in companies adopting Bitcoin treasury strategies.

Source:

[1] Metaplanet's Bitcoin Strategy Is Facing Major Financing Test (https://www.mitrade.com/insights/news/live-news/article-3-1086445-20250902)

[2] Metaplanet's Bitcoin strategy on the ropes after 54% decline (https://ambcrypto.com/metaplanets-bitcoin-strategy-on-the-ropes-after-54-decline-details)

[3] Metaplanet Buys 1009 BTC, Reaches 20000 BTC (https://cointelegraph.com/news/metaplanet-20000-btc-treasury-share-price-slump)

[4] Metaplanet Holders Approve New Funding Tools to Buy ... (https://www.bloomberg.com/news/articles/2025-09-02/metaplanet-holders-approve-fresh-funding-tools-to-buy-bitcoin-mf1zcapa)