Tokyo-listed Metaplanet, known for its aggressive Bitcoin accumulation, is under strain as its stock price has dropped 54% since June despite Bitcoin gaining 2% in the same period. The fall has slowed its “flywheel” funding strategy, where higher stock prices helped raise capital through MS warrants with Evo Fund.
The company currently holds 18,991 BTC, ranking as the seventh-largest public corporate Bitcoin holder. Ambitiously, it aims to reach 100,000 BTC by 2026 and 210,000 BTC by 2027. However, with the stock down to 879 JPY, liquidity is squeezed, making warrant exercises less attractive.
To keep building reserves, CEO Simon Gerovich is turning to alternative fundraising. Metaplanet plans to raise around $880 million via an overseas public share offering, while shareholders are set to vote on issuing up to 555 million preferred shares worth $3.7 billion. These preferred shares, offering up to 6% annual dividends, are designed to attract investors without diluting common shareholders.
Analysts remain cautious as Metaplanet’s market value is now just twice its Bitcoin holdings, compared to eight times in June. Still, some see potential for a reversal as the firm prepares for inclusion in the FTSE Japan Index, which Gerovich calls a key milestone in its mission to lead as a Bitcoin treasury firm.
