Bitcoin Proxy Seeks Funding Fix as 'Flywheel' Falters Amidst Crypto Buying Spree

Metaplanet Inc.'s stock has halved in value since mid-June, jeopardizing an unusual financing arrangement that relied on the firm's stock to generate capital for accumulating Bitcoin. President Simon Gerovich is seeking to raise $884 million through an overseas share sale and is considering issuing preferred stock. Metaplanet aims to quadruple its Bitcoin holdings by the end of next year and has raised over $1.6 billion so far this year.

Metaplanet Inc., a Japanese investment company known for its aggressive Bitcoin accumulation strategy, is facing significant financial challenges. The company's stock has halved in value since mid-June, jeopardizing its unusual financing arrangement that relied on the firm's stock to generate capital for accumulating Bitcoin. President Simon Gerovich is now seeking to raise $884 million through an overseas share sale and is considering issuing preferred stock.

The recent stock slump has made it less compelling for Evo Fund, a boutique investment firm that has been financing Metaplanet's Bitcoin purchases through a unique stock acquisition rights agreement, to exercise its warrants. This arrangement, known as the "flywheel," has slowed down, reducing the capital available for Bitcoin purchases. Metaplanet's Bitcoin holdings have grown by less than 50% since June, compared to a 160% increase in the two months prior.

To address these challenges, Metaplanet plans to raise $884 million by selling shares overseas in an underwritten offering, with an option to boost the size. Shareholders are set to vote on a proposal to allow the company to issue preferred stock, a rarity in Japan, to secure even more funding. The company aims to raise up to ¥555 billion ($3.8 billion) through the issuance of preferred shares, which would pay a maximum 6% dividend.

Metaplanet's recent financial activities have also led to its inclusion in major financial indices. The firm has been upgraded from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review, earning a spot in the FTSE Japan Index. This reclassification will see it automatically added to the FTSE All-World Index, a move that could increase its visibility among global investors.

The company's goal is to more than quadruple its Bitcoin holdings to 100,000 tokens by the end of next year and then roughly double it again in 2027. Metaplanet has raised over $1.6 billion so far this year to fund its buying spree.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-30/bitcoin-btc-proxy-s-chief-seeks-funding-fix-as-flywheel-falters
[2] https://www.ainvest.com/news/bitcoin-news-today-metaplanet-1-2b-move-bitcoin-corporate-lifeline-weak-yen-era-2508/