Metaplanet Stock Plunges 50%, Aims to Raise $3.8B for Bitcoin Expansion

Metaplanet Stock has plummeted 50% since mid-June 2025, with a proposed plan to raise $3.8 billion in new financing by selling shares overseas. The funds will primarily be used to purchase Bitcoin, with the goal of acquiring 30,000 BTC by year-end. The move has sparked concerns about the dilution of shares and potential volatility in Metaplanet Stock. Despite this, social media sentiment remains positive, with many crypto enthusiasts praising the company's vision.

Metaplanet, a Tokyo-listed investment firm, has seen its stock price plummet by 50% since mid-June 2025. The company has announced plans to raise $3.8 billion through a public share offering in overseas markets. The funds will primarily be used to purchase Bitcoin, with the goal of acquiring 30,000 BTC by year-end. The move has sparked concerns about the dilution of shares and potential volatility in Metaplanet Stock.

The company's share price decline, despite a 2% increase in Bitcoin's value during the same period, has put pressure on its capital-raising model. The mechanism, known as a "flywheel," relies on rising share prices to unlock funding through warrants issued to Evo Fund, its key investor. With the share price drop, exercising these warrants is no longer attractive for Evo, squeezing Metaplanet's liquidity and slowing its Bitcoin acquisition strategy [1].

Metaplanet's CEO, Simon Gerovich, has turned to alternative fundraising methods. The company plans to issue up to 555 million preferred shares, a rare instrument in Japan, which could raise as much as $3.7 billion. These shares, expected to offer up to 6% annual dividends and initially capped at 25% of the firm's Bitcoin holdings, may appeal to Japanese investors starved of yield [2].

The proposed share sale comes as Metaplanet aims to expand its Bitcoin holdings. The company currently holds 18,991 BTC and has ambitions to grow its stack to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027. However, analysts are cautious, noting that the Bitcoin premium, the difference between Metaplanet's market cap and the value of its Bitcoin holdings, has fallen significantly, increasing the risk of dilution [3].

Despite the concerns, social media sentiment remains positive, with many crypto enthusiasts praising Metaplanet's vision. The company's inclusion in the FTSE Japan Index, following a strong second-quarter performance, is expected to attract passive capital flows into Bitcoin, offering indirect exposure to the cryptocurrency for investors tracking the index [1].

References:
[1] Metaplanet to Raise $1.2B, $835M for Bitcoin Buys (https://cointelegraph.com/news/metaplanet-raise-1-2b-bitcoin-purchases)
[2] Metaplanet turns to overseas markets (https://cointelegraph.com/news/metaplanet-bitcoin-fundraising-flywheel-breaks)
[3] Metaplanet, Smarter Web add almost $100M in Bitcoin to treasuries (https://investorempires.com/metaplanets-bitcoin-fundraising-strategy-under-pressure-as-stock-drops-54/)