Share Price Drop Challenges Fundraising Model
Metaplanet, the Tokyo-listed firm known for its aggressive Bitcoin accumulation strategy, is facing a significant financial challenge as its stock price tumbles. The company’s share price has fallen 54% since mid-June, despite Bitcoin prices gaining roughly 2% during the same period.
This sharp decline has strained the firm’s capital-raising flywheel, a strategy heavily reliant on issuing share-based warrants to secure funding. According to recent reports, the warrants issued to Evo Fund—Metaplanet’s key investor—are now unattractive to exercise due to the falling share price, tightening the company’s liquidity.
Metaplanet’s Bitcoin Ambition Under Threat
Currently holding 18,991 BTC, Metaplanet ranks as the seventh-largest public Bitcoin holder worldwide. The company aims to expand its holdings to 100,000 BTC by 2026 and 210,000 BTC by 2027, signaling one of the most ambitious Bitcoin treasury plans globally.
However, experts warn that the declining Bitcoin premium—the ratio between Metaplanet’s market cap and the value of its Bitcoin holdings—poses a major risk. “The Bitcoin premium is what will determine the success of the entire strategy,” noted Eric Benoit of Natixis. The premium has dropped from over 8x in June to just 2x, creating dilution concerns for shareholders.
Alternative Funding Moves
To counter liquidity pressure, Metaplanet is exploring new avenues. On Wednesday, the firm announced plans to raise 130.3 billion yen ($880 million) through an overseas public share offering. Additionally, shareholders will vote on issuing up to 555 million preferred shares, a rare move in Japan that could secure 555 billion yen ($3.7 billion). These shares, offering up to 6% annual dividends, are designed as a defensive mechanism to protect common shareholders from excessive dilution if the stock falls further.
Despite challenges, Metaplanet recently advanced from small-cap to mid-cap status in the FTSE Russell September 2025 review, gaining inclusion in the FTSE Japan Index. Whether these strategic shifts will restore investor confidence remains uncertain, but the outcome could shape one of the most high-profile Bitcoin treasury experiments in the market today.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.