TLDR
Metaplanet’s stock has dropped 54% since mid-June despite Bitcoin’s gains
The company holds 20,000 Bitcoin (worth over $2 billion) and aims for 100,000 BTC by 2026
Falling share prices threaten the company’s fundraising model based on MS warrants
Metaplanet plans to raise $880 million through overseas share offerings and potentially $3.7 billion through preferred shares
The company just purchased an additional 1,009 Bitcoin for approximately $110 million
Metaplanet, a Tokyo-listed company known for its aggressive Bitcoin accumulation, is facing challenges as its stock price continues to fall. The firm’s shares have plunged 54% since mid-June, even as Bitcoin gained about 2% during the same period.
This stock decline puts pressure on the company’s primary fundraising method. Metaplanet has been using a “flywheel” strategy dependent on rising share prices to secure funding through MS warrants issued to its key investor, Evo Fund.
The company currently holds 20,000 Bitcoin, purchased at an average price of 15.1 million yen per BTC. This makes Metaplanet the seventh-largest public holder of Bitcoin globally, with holdings valued at over $2 billion.
Led by former Goldman Sachs trader Simon Gerovich, Metaplanet has set ambitious goals. The company aims to grow its Bitcoin stack to 100,000 BTC by the end of 2026, and 210,000 BTC by 2027.
Our Bitcoin income generation business has grown for 3 straight quarters. This recurring income adds resilience and supports further accumulation. This also gives us flexibility to service potential future financing to enhance our treasury operations. pic.twitter.com/bwj6iRnylg
— Simon Gerovich (@gerovich) August 17, 2025
Alternative Fundraising Approaches
With its share-based fundraising model under stress, Metaplanet is exploring new options. On Wednesday, the company announced plans to raise approximately 130.3 billion yen ($880 million) through a public share offering in overseas markets.
Additionally, shareholders will vote Monday on whether to approve the issuance of up to 555 million preferred shares. This rare financial instrument in Japan could potentially raise as much as 555 billion yen ($3.7 billion).
Gerovich described the preferred shares as a “defensive mechanism” in an interview with Bloomberg. These shares would allow capital infusion without diluting common shareholders if the stock falls further.
The preferred shares are expected to offer up to 6% annual dividends. They will initially be capped at 25% of the firm’s Bitcoin holdings, which may appeal to Japanese investors seeking yield.
However, analysts remain cautious about this approach. Eric Benoit of Natixis stated that “the Bitcoin premium is what will determine the success of the entire strategy.” This premium—the difference between Metaplanet’s market cap and the value of its Bitcoin holdings—has dropped from over 8 times in June to just 2 times now.
*Metaplanet Acquires Additional 1,009 $BTC, Total Holdings Reach 20,000 BTC* pic.twitter.com/kwvUkQaFth
— Metaplanet Inc. (@Metaplanet_JP) September 1, 2025
Despite these challenges, Metaplanet continues its Bitcoin accumulation strategy. On September 1, the company purchased an additional 1,009 Bitcoin worth approximately $110 million, at an average buying price of 16.3 million yen per Bitcoin.
The company’s BTC Yield, which reflects the percentage change in the ratio of Total Bitcoin Holdings to fully Diluted Shares Outstanding, was 30.7% from July 1 to September 1, 2025. This metric was higher in the previous quarter, reaching 129.4% from April to June.
Metaplanet launched its Bitcoin accumulation strategy in April 2024. The company has reported strong earnings in recent months, with total revenue of 1.2 billion yen ($8.4 million) from April to July.
According to its latest quarterly report, Metaplanet saw a 41% surge quarter-on-quarter, with a profit of 11.1 billion yen ($75.1 million) in Q2. The company expects full-year revenue of 3.4 billion yen ($23.1 million) and operating profit of 2.5 billion yen (about $17 million).
Gerovich highlighted the growth of their Bitcoin income generation business: “Our Bitcoin income generation business has grown for 3 straight quarters. This recurring income adds resilience and supports further accumulation.”
The company has suspended Evo’s warrant exercises from September 3 to 30, preparing the way for the preferred stock issuance. Whether this shift can stabilize Metaplanet’s funding strategy remains uncertain.
Metaplanet’s adviser Eric Trump is expected to attend the firm’s shareholder meeting in Tokyo on Monday. This follows his appearance last week at the Bitcoin Asia conference in Hong Kong.
The company was recently upgraded from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review. This change earned Metaplanet inclusion in the FTSE Japan Index, following the company’s strong Q2 performance.
